Experts call for stricter regulation of auction market

Experts called for stricter regulations of the auction market to boost its future development.

After the closure of the fifth auction season in Beijing, experts in the field — after a total turnover of 14.3 billion yuan ($2.3 billion) — gathered at a forum on Thursday to discuss how to meet the needs of the expanding market.

"The industry needs more self-discipline," said Shen Yanbin, the manager of Zhonghongxin Auctioneer in Beijing. "Especially after the winter auction season of 2012."

China's investment in art grew dramatically in 2009 and in 2010. The peak arrived in 2011 with several items auctioned at prices over 10 million yuan, but this year, only one piece was auctioned at a price over that level.

"The industry lacks a sense of mutual interest in terms of proper methods of doing business," said Liu Shuangzhou, professor at the Law School of the Central University of Finance and Economics.

However, the laws of the market will eventually lead companies to a more solid development pattern, said Dong Jun, the director of Yongle Auctioneer, at the annual debate among auctioneers hosted by Zhilan Yaji, an art collectors and dealers club.

Until Dec 18, nearly 500 auctions had been held by more than 100 companies with items such as Chinese paintings and calligraphy pieces, porcelain, jade, paintings, sculptures, and rare copies of ancient books, according to the Beijing Auctioneers Association.

"To survive and develop in the long term, companies will have to search out the best way to benefit both themselves and the clients," said Dong. "During that search we will finally reach a state of self-constraint."