The Hong Kong International Art Fair Kicks Off

The economic boom in Asia has seen China overtake the United Kingdom as the world's second biggest art market after the U.S.

Under this backdrop, this year's Hong Kong International Art Fair caught the most attention.

ART HK 11 promises to be the biggest yet, with 260 galleries from nearly 40 countries taking part.

Zhang Cheng takes a look at one of the most important events in the global arts' calendar.

Art lovers and collectors flock to the Hong Kong Convention Center for the biggest art show in Asia.

Prices here range from just one thousand U.S. dollars to more than 30 million dollars - there's something to suit every pocket.

The styles are varied, from Modern Masters like Pablo Picasso to the latest up-and-coming Chinese contemporary artists.

Fair Director Magnus Renfrew says there has a great deal of very interesting work being produced in China. People's tastes have changed and collectors have become more demanding.

"In the past, I think there are quite lot of work that was produced that was quite commercially driven, and included many stereotypes about China - in terms of having motifs of pandas, Mao, the colour red etc. And now, there is much more interesting work being produced that really references what's happening in China now. China is experiencing some phenomenal changes at the moment."

Works by modern European masters like Picasso have made big money at auctions in recent years.

This is no exception at the ART HK 11. The Picasso is the most expensive artwork in the fair. Dealers have their fingers crossed that buyers will show up in strength for this and other Picasso paintings.

This is the fourth year of the fair, with more than 260 galleries from 38 countries, up from 155 galleries last year.

Fair Director Magnus Renfrew says it's the biggest yet, with Hong Kong the perfect destination - an international gateway for art.

"We chose Hong Kong because it has many advantages over other destinations in the region - not least that there is no tax on imports and exports of art, English is commonly spoken. The shared history with the West means it is the place where people from Asia and people from the West feel at home."

Cracking the Chinese market is the holy grail for Western dealers as economies of the West struggle to overcome the fallout from the global financial crisis of recent years.

According to Hurun Wealth Report 2011 - China's version of Forbes Rich List - there are 960,000 millionaires in China with personal wealth of 10 million Yuan or 1.5 million US dollars, up nearly 10 percent from last year.

Art collection is one way for new millionaires to splash their cash.

Dealers like Christophe Van de Weghe are desperate to make the right connections with China's big spenders.

"They are biggest buyers today in jewellery, there are the biggest buyers in wine. I know that the auction houses sell more wine or jewellery in China than anywhere else in the world. So you know I understand that there is big potential. I understand that there are a few, but some people that buy modern and contemporary art here. So I like to be here and I would like get my name out, then hopefully meet people."

In addition to the main sector, the fair will launch a new segment for galleries located in Asia. Titled Asia One, it will highlight presentations of work from artists of Asian origin. Some of them are quite young.

Nara Huang is deputy manager of FQ Project, a Shanghai gallery with about 20 young Chinese artists. She is keen to introduce their art to Western collectors - at attractive prices.

"In the international market, generally, Chinese artists create record high prices. In China, we want to say that we not only have these excellent artists, but have some young artists as well. They have their own personalities and styles different from other famous artists. We wish to introduce our work at a more reasonable price and a better market to Western and Hong Kong collectors."

Art HK has grown since its inception in 2008. Attendance rose 65 percent, to 46,000 visitors between 2009 and 2010.

Plus, the growing significance of the Hong Kong Art Fair is reflected in the announcement this month that it had been acquired by the same group that runs the two most important collector fairs in the world - Art Basel and Art Basel Miami.

As of July 1, 2011, MCH Swiss Exhibition Ltd., say they will take a majority ownership stake in the organizers of the Hong Kong International Art Fair, Asian Art Fairs Ltd.

ART HK 11 runs from Thursday May 26 until Sunday at the Hong Kong Convention and Exhibition Center.

For CRI, I'm Zhang Cheng.