CKGSB Professor Mei Jianping Unveils Innovative Global Art Indices for Collectors

On December 31, 2024, Professor Mei Jianping from the Cheung Kong Graduate School of Business (CKGSB) announced the launch of two revolutionary art indices: the MM Global Impressionist Price Index and the MM Global Contemporary Art Price Index. Moreover, the eagerly awaited 2024 MM Chinese Art Index was also unveiled, providing a comprehensive overview of pricing trends, liquidity, and collector sentiment in China’s dynamic art market.

These newly established indices leverage auction data from prestigious houses such as Sotheby’s, Christie’s, and Phillips, lending credibility and depth to their insights. The MM Global Impressionist Price Index has tracked a stable average annual growth rate of 2.8% since the year 2000, whereas the MM Global Contemporary Art Price Index boasts a more vigorous annual growth rate of 5.0% over the same time frame. Notably, however, the year 2024 experienced notable corrections within these markets, with the indices for Impressionist and Contemporary art witnessing declines of 3.2% and a staggering 19.5%, respectively.

Conversely, the 2024 MM Chinese Art Index showcases a contrasting narrative, revealing that Chinese art has managed to outperform broader global art trends. Impressively, it has achieved an outstanding 9.3% compound annual growth rate since the year 2000, a figure that eclipses the growth rates observed in both Impressionist and Contemporary art indices. Despite facing a market contraction of 12.3% in 2024 and a cumulative 48.4% decline since reaching its peak in 2020, Chinese art remains an attractive investment option, particularly due to its high volatility and potential for market recovery.

The MM Chinese Art Index further explores subcategories segmented by medium—comparing ink with oil—and by period, showcasing the historical significance of both modern and contemporary works. Among the insights presented, oil paintings and contemporary creations have demonstrated remarkable market performance, achieving annual growth rates of 10.8% and 11.5%, respectively.

Another intriguing aspect of the MM Chinese Art Index is the incorporation of the MM Chinese Art Sentiment Index, which tracks audience and collector sentiments, portraying shifts in market confidence over the past 20 years. This dimension provides valuable insights into how collector enthusiasm can drive demand and ultimately shape market trends.

In addition, the MM Chinese Art Liquidity Index serves to underline the key artists whose works display exceptional market liquidity, such as the renowned Zao Wou-Ki and Wu Guanzhong. A comparative analysis also positions Chinese art in stark contrast with traditional assets like the S&P 500, reinforcing its value proposition as a long-term investment and an effective hedge against inflation.

These developments come in the wake of CKGSB's ongoing commitment to nurturing knowledge in the art market, reflecting the institution's broader ethos of cultivating transformative leaders who possess a global vision and a deep sense of social responsibility. With the launch of these indices, Professor Mei Jianping aims to empower collectors and investors alike, providing a foundational tool that can inform decision-making in an ever-evolving art landscape.

By instituting these invaluable resources, CKGSB not only marks a significant milestone for the Chinese art sector but also fosters a new avenue for engagement and investment opportunities among global collectors. Art, after all, is not merely a creative endeavor; it is an evolving economic sphere that demands an informed understanding.

For more extensive details on these indices and their implications, the full report can be accessed HERE.