Set up for major photo opportunity

Other institutions have also contributed to the cultural growth of photography in China. There are about 25 museums that include photographs in their collections, and photographic galleries have sprung up around the country, including the MR Gallery in Beijing, established after its founder attended a Huachen auction.

"Some collectors say they are doing it for the country as the authorities have yet to recognize the value of old photographs," Li says. "They do it in the hope of building a museum and leaving some memories for the nation."

However, Li bemoans the fact that the Huachen auction house is the only picture show in town.

"We are still the only player in the market. And it cannot improve without participation and competition from others."

Another drawback is the lack of information sources and reference standards.

"After seven years, the market is still in its very early stage, because we don't have a complete history of Chinese photography to refer to," Li says. "And we don't have a photography museum to inform our work."

Collector and author Bennett believes "the market is still unstable", partly due to price speculation.

"The present vacuum in knowledge and uncertainty are contributing to market instability. There are still only a handful of useful books on early China photography. The absence of a dedicated photography museum in China is a drawback, and especially the absence of the necessary tools to identify the photographers of so many of the early photographs."

While early Western photographers of China, such as John Thomson, William Saunders and Thomas Child, are becoming better known, the work of the early Chinese master photographers, such as Lai Fong, Tung Hing and Pow Kee, is still largely unknown, Bennett says.

"As their work becomes increasingly identified, critiqued and compared to their Western contemporaries, the market will adjust and become rather more stable," he says.

Huachen now concentrates on documentary and old photographs, but is looking at more recent work.

While contemporary photos have been leading the way in the West, Chinese collectors mostly have an eye for historical pictures.

"People find it hard to empathize with modern art," says Guan Yu, director and general manager of the research firm Art Market Monitor of Artron in Beijing. "They are still learning. When it comes to investment, they tend to choose traditional art."

Li, however, makes sure that 10 percent of every auction is dedicated to contemporary photographers. Contemporary works sold out last year.

"Sources of old photographs are limited. Contemporary is where our future is and we have to gear up. There are truly good works among the contemporary artists, and we want to help and encourage them."

Photography accounts for less than 5 percent of Huachen's total revenue, but company founder and general manager Gan Xuejun sees that increasing.

"It's not only about photographs, it's about making up for the lapses in the past," he says. "It's easy to sell whatever is profitable at the moment, but what about in five years? How do we prepare for that? Photography is not a money machine at present, but it's an opportunity to build ourselves as a professional brand."

sunyuanqing@chinadaily.com.cn