Can Hong Kong Maintain Its Status as the Asia-Pacific Region’s Leading Art Hub?
Having survived the pandemic and massive protests, speculation has mounted over whether Hong Kong is losing its status as a leading international financial and commercial hub. Yet from the first days of Hong Kong Art Week, there has been a clear sense that the city is making a confident return. While it may not yet have reached its pre-pandemic heights, the momentum is undeniable, with both government and private investment fueling ambitious new projects and long-term development. Though the city is not immune to macroeconomic pressures and the ever-present geopolitical complexities, Hong Kong—along with the broader Asia-Pacific region—is probably one of the most stable places to be in a globally unstable moment.
As Art Basel Hong Kong opens, Observer caught up with Fotini Xydas, head of art finance at Citi Wealth, and Betsy Bickar, an art advisor and SVP at Citi Wealth, to discuss market trends in the region at the intersection of art and wealth management.
Hong Kong has a growing population of high-net-worth individuals, and although the pandemic-era lockdown saw art centers emerge elsewhere in Asia, both Xydas and Bickar are unequivocal: Hong Kong remains the main hub for international art trade in the Asia-Pacific. “The fact that all auction houses invested in securing major regional headquarters in Hong Kong is a real sign of faith in the market there,” Bickar said. “We are seeing very sophisticated contemporary collections coming out of that region. I think a lot of the change taking place is galvanized by the Asian market in general. There’s clearly an emphasis on youth culture, especially among new collectors, but they also developed a more open sort of mindset in terms of collecting across genres.”
Bickar and Xydas agree that the arrival of Art Basel in 2013 and the subsequent expansion of international auction houses into the city were pivotal in cultivating a more globally oriented collecting culture. “In the beginning, there were more collections that were focused on collecting Asian artists in particular, but over the years, we’ve seen that now expand to more Western artists,” Xydas said. She pointed to a growing awareness in Asia of art as an asset class—one increasingly viewed as an important part of a broader portfolio strategy. They’re also seeing significant potential for growth in their art lending segment. Still, this also comes with challenges, as artworks must already have an international market to be considered viable collateral.
Meanwhile, auction houses in Hong Kong have been experimenting with more eclectic cross-category sales to appeal to the diverse tastes of local wealth. “It’s an interesting mix, most of the time,” Bickar said. “They understood and showed how you could put an iconic Infinity Net by Yayoi Kusama next to a flowery Pierre Auguste Renoir.” The lavish boutique experience that spans categories and time periods offered by the new Sotheby’s headquarters in Central is a prime example, with the auction house positioning itself as a destination for a new generation of affluent collectors to broaden its profile beyond the traditional auction model.
But despite the optimism voiced by Citi’s experts, Hong Kong now faces new challenges—including the consequences of an escalating U.S.-China trade war. President Donald Trump’s decision to classify Hong Kong exports as “products of Chinese origin,” despite protests from the city’s government, triggered a swift response. A number of international shipping companies exited the market, including deliveroo, which announced the closure of its Hong Kong operations after nine years. fedex had already relocated its Asia-Pacific headquarters from Hong Kong to a more stable Singapore in 2023.
Since the implementation of the controversial national security law, which effectively tethered the city to the broader controls of the Chinese government, the international media has continued to speculate about Hong Kong’s potential decline as a global financial hub. Hong Kong authorities are actively pushing back against these narratives through new investments. This year, the government’s Mega Arts and Cultural Events Fund supported both Art Basel and Art Central. At the same time, it suspended backing for PHOTOFAIRS, which was eventually canceled. The city’s once-buoyant cultural sector is now facing economic headwinds. The ambitious West Kowloon Cultural District—home to M+ and the Palace Museum—is currently seeking private investors to cover a HK$1 billion ($128.7 million) deficit for the current fiscal year.
Signals from the broader Chinese art market aren’t particularly reassuring either. China’s total auction sales dropped 46.1 percent in 2024 to $1.9 billion, down from $3.49 billion in 2023, according to the Artnet Price Database. Grappling with the effects of a severe property crisis and broader economic slowdown, Hong Kong’s auction market also took a hit, with modern and contemporary art sales declining by 33 percent to $576 million—marking the lowest level since 2017.
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In stark contrast, data from the Art Basel & UBS survey on global collecting published earlier this year showed signs of resilience in the region. Respondents in Mainland China once again reported the highest levels of median spending, while Japan and Hong Kong recorded the lowest, with more sellers than buyers. Still, Hong Kong accounted for the second-largest global share of art imports at 19 percent, with Mainland China adding another 5 percent. Export figures are also striking: Hong Kong’s share has grown from 2 percent in 2010 to 18 percent in 2023, overtaking the U.K.
There are also signs of strength in specific market segments. Phillips reported a 22 percent increase in its Hong Kong sales during its 2024 spring auctions compared to October 2023, indicating a selective recovery. Earlier this year, the M+ museum signed a new Memorandum of Understanding (MOU) with MoMA in New York—the first comprehensive collaboration between the U.S. institution and an Asian museum. The partnership will cover curatorial research and exchange, conservation, program sharing and professional development, further positioning M+ as a cultural leader in the region. The initiative aims to strengthen ties between the two institutions and help define M+ as the “Asian MoMA,” an anchor for the visual culture of the region.
When considering Hong Kong’s future prospects, it’s worth looking at the number of millionaires to understand the region’s true market potential. According to the Art Basel & UBS report, the U.S. remained the largest center of HNW wealth globally in 2023, accounting for 38 percent of the worldwide population (unchanged from 2022). China—including both Mainland China and Hong Kong—followed at 12 percent. The fastest growth in millionaire numbers, however, is expected in key Asian regions beyond Mainland China, including Taiwan, Japan, South Korea and Indonesia. With India (up by 41 percent to $954) and China as major players, the region also includes other significant markets such as Japan, Taiwan and South Korea. Altogether, Asia’s share of global billionaire wealth has risen to 27 percent, surpassing Europe’s 22 percent. These numbers are especially relevant in light of the ongoing generational wealth transfer, with more than $84 trillion in assets expected to change hands over the next two decades.
Bickar confirmed that Mainland China continues to present its own set of challenges, telling Observer that Seoul and Japan are particularly compelling at the moment, especially in the contemporary and postwar markets. On the financial side, Xydas is watching Singapore with interest, though she notes it may take time for the city to develop the kind of full-spectrum art ecosystem that Hong Kong already possesses.
Conversely, while Japan’s art sector has seen 11 percent growth since 2019—a record increase—and is projected to expand more broadly, the Korean art market has begun to slow. In the inaugural year of Frieze Seoul in 2021, the Korean art market surged by a remarkable 96 percent compared to the previous year, with transactions peaking at 806.6 billion won in 2022. But by 2023, that upward trajectory reversed. New political instability in South Korea and the depreciation of the won compounded the downturn, and the trend persisted into 2024. Leading auction houses reported a 25.2 percent decline in successful bids compared to the previous year, while the primary market followed suit, slowing in line with broader global patterns.
For now, none of these rising centers has managed to displace Hong Kong as the region’s core marketplace for high-value art transactions or for the sheer volume of sales across a wide spectrum of collectibles at lower price points. Underscoring this, Christie’s will host its first-ever evening sale during Art Basel on March 28, headlined by a 1984 Basquiat estimated at HK$95 million to HK$125 million (approximately $13 million to $16 million). Meanwhile, Phillips and Sotheby’s will take the rostrum the following night with their seasonal modern and contemporary evening sales, featuring a strong mix of international blue-chip works and standout regional names.
Amid this fast-shifting landscape—and ongoing challenges and uncertainties—this year’s Art Basel, together with the week’s auctions, will serve as a litmus test for Hong Kong’s current role in the global art market. All eyes are watching to see whether it can maintain its position at the top.