The Intelligence from The Economist State of the art: Chinese market flounders
42 snips
Jan 2, 2026 
In this discussion, Anne Rowe, the Obituaries editor at The Economist, delves into the fascinating history of the American penny, exploring its economic and social significance despite being discontinued. The conversation also examines China's art market, which flourished during a property boom but is now facing a downturn due to falling house prices. With art sales dropping and top artists losing value, the dynamics of collecting and investment are shifting. Rowe's insights on the penny highlight its unexpected cultural impact in modern society.
AI Snips
Chapters
Transcript
Episode notes
Property Crash Drove Art Prices Down
- China's art-market boom tracked its property boom, rising 15x between 2000 and 2020 and peaking in 2020.
- By 2025 the MM Chinese Art Price Index fell back to 2009 levels as property collapse, COVID lockdowns and capital controls hit demand.
Modigliani Purchase Symbolised Wealth
- Leo Chan, a former cab driver turned property magnate, paid about $170m for a Modigliani in 2015.
- That purchase exemplified how Chinese property wealth fuelled flashy, high-end art buying.
Multiple Shocks Hit Chinese Art Demand
- Multiple forces crushed Chinese art demand: COVID lockdowns, capital controls and a state distaste for ostentation.
- The property-sector implosion dealt the largest blow by removing wealthy buyers and liquidity.