Thursday 12 March 2009

Refusal to pay for bronzes has a price

Art dealer may have to close his auction firm

1 comment:

Guanyu said...

Refusal to pay for bronzes has a price

Art dealer may have to close his auction firm

Bloomberg in Xiamen, Fujian
12 March 2009

Cai Mingchao, the art dealer who is refusing to pay for the HK$300 million Qing dynasty bronzes he successfully bid for in the Yves Saint Laurent auction, said he had bid with the intention of paying. But he had second thoughts and decided it was wrong to do so.

In his first interview with the media since the February 25 sale, the 44-year-old auctioneer wept when he realised that his credibility was shot and he may now have to close his business.

He was praised by people in China for walking away from the bronzes - which were plundered by foreign troops from the Old Summer Palace in Beijing in 1860 - and has been condemned by other dealers and by his own government. In his patriotic fervour, he may have forgotten that in the world of high-end art sales, where millions of dollars worth of items may sell on the basis of a phone call or handshake, defaulting is seen as unprofessional.

"This has damaged me; I have lost the business I love," said Mr. Cai, in his office in Xiamen, Fujian province.

His black, unbuttoned choker-collar suit hung loosely on his tanned 1.58 metre frame. He wore a buzz cut, rubber-soled black canvas shoes and a three-day-old moustache. Mr. Cai moved as quickly as he spoke, with a Fujian accent. He smoked three American cigarettes in 30 minutes, sometimes struggling to hold back more tears.

Mr. Cai, a Xiamen native, would not say how much he was worth. The third of a cloth merchant's four children, he said he inherited some money and made the rest in stocks and real estate. He said he left Xiamen's art school at 18 and started in business by renting a store trading cloth. In 2005, he opened Xiamen Xinhe Art International Auction after leaving state-backed Xiamen Auction, where he said he started the art-sale department.

In October 2006, Mr. Cai made headlines when he paid a record HK$117 million for a Ming dynasty Shakyamuni bronze Buddha at a Sotheby's auction in Hong Kong. He said he settled the bill in three months and it should not matter how he did so. He said he still owns the Buddha, which is kept in a safe.

"He has a very good reputation with art dealers," said Roger Keverne, 62, head of a namesake gallery and chairman of Asian Art in London, an annual exhibition by the city's galleries. Mr. Keverne said he had met Mr. Cai in Beijing and Hong Kong in the past few years. "I found him charming, his manners immaculate. I have only heard good things about him."

At about 2am Xiamen time on February 26, the last day of the Saint Laurent sale was under way in Paris. With seven lots to go before the bronzes came up, Mr. Cai got a call from Christie's Asia deputy chairman, Ken Yeh, to prepare to bid. Mr. Cai watched the auction live on Phoenix Television. First came the rat head. Mr. Cai looked on as the bidding on Lot 677 climbed from €9 million (HK$88.8 million) to €11 million.

"Just as they were about to close the deal, I went in," Mr. Cai said. "I felt if I didn't bid, I would lose it forever."

He offered €12 million. A rival countered with €13 million, so Mr. Cai went up to €14 million - the final bid. Applause broke out. Next up was the rabbit head. Mr. Cai's €14 million bid beat a rival's €13.5 million, and he secured the second bronze.

"At that time, maybe I didn't consider if I could pay for them," he said. "At the most, I would sell some of my ceramics to pay for them."

That afternoon, Mr. Cai called and asked for a meeting with Niu Xianfeng, a Beijing-based deputy director of the National Treasures Fund, which helps retrieve lost relics abroad under the Ministry of Culture. Mr. Cai has been an unpaid adviser with the fund since December 2007.

Mr. Cai came to think that accepting the bronzes was like buying "two time bombs and placing them at home, not knowing when they will explode". Asked if he had considered that before bidding, Mr. Cai said he couldn't tell what prompted him to, just that he felt "mixed emotions" when the sculptures were on the block.

On February 28, Mr. Niu and colleague Wang Weiming arrived at the Xinhe office, and Mr. Cai told them he had won the auction. "They were shocked," Mr. Cai said. "Then they said `Good, good. We thought foreigners had bought them'."

Mr. Cai said that, fearing for his reputation, he is cancelling Xinhe's spring sale, which made 47.4 million yuan (HK$53.8 million) last year, one of Fujian's biggest. The autumn sale may also be called off.

He said that, faced with such a situation again, he was not sure he would bid for the bronzes.

"No one [in the government] knew what I was doing. Even if they knew, they wouldn't look for me. Why should I help? I am not on their payroll."

He said he was now trying to pick up the pieces of his life. If he ends his art-auction activity, Mr. Cai said he might focus on his real estate and securities trading businesses.