Hong Kong’s art trading hub ambitions rest on more than headline sales

Recent display of a rarely seen Vincent van Gogh painting at Sotheby's Hong Kong prompted questions about the city's ambitions to become an art trading hub. While the exhibition drew considerable public interest, it raises concerns about the sustainability of such momentum. A global art hub relies on essential services like authentication, conservation, insurance, finance, logistics and exhibition.

Hong Kong possesses a favorable environment for this industry, including a free port history, common law system, presence of major auction houses, galleries and institutions. However, the challenge lies in transforming this advantageous position into a lasting local capability.

The trade in art, antiques and collectors' pieces amounted to HK$105.5 billion (US$13.5 billion) in 2023, which constituted 1.2% of the city's overall merchandise trade. This figure, however, does not provide a comprehensive understanding of the income, jobs or expertise generated locally. Recent figures from the Census and Statistics Department indicate HK$12.9 billion in value added and 25,600 jobs in the art, antiques and crafts sector in 2024.

Distribution accounted for 97% of this value added, leaving the contribution of art trading itself unclear.

The government's investments should aim to build a deeper industry, including facilities for storage, conservation, insurance and other specialized services. Evidence of local capability would bolster Hong Kong's pitch as an art trading center. It is crucial to identify gaps in services to attract businesses that will keep expertise rooted in the city.

Auction sales, while significant, do not automatically retain the expertise or value they generate. The success of the city's hub strategy should be measured by the availability of trusted specialists in the market, not just the headline sales figures.

To assess the impact of the art trade on the local economy, Hong Kong needs an annual report compiled by the Census and Statistics Department. This report should differentiate between goods passing through the city and income/expertise retained locally, tracking services provided by businesses, specialist jobs, wages and value added.

Smaller studios and service providers should also be included in the reporting bands, allowing for protection of client confidentiality while demonstrating where expertise is growing. The government has not yet compiled detailed counts of auction houses, galleries or auctions in Hong Kong. An annual report would help policymakers, businesses, and the public judge whether investments are contributing to lasting capability.

The government's 2026 policy address includes plans for a study on arts trading centers, a WestK Academy auctioneer fellowship, and courses in Chinese art and heritage conservation. The success of these initiatives should be judged by where trainees go next. Courses should lead to paid placements with auction houses, museums, art handlers, conservators and insurers.

By tracking the number of trainees who enter and remain in the field, the city can gauge the growth of a skilled workforce. Additionally, a public case for showcasing the work behind the market should be made. When major events receive public support, organizers could provide school visits, conservation talks or brief explanations of the transportation and care of artworks, allowing the public to appreciate the knowledge and skilled work that underpins the art trade.