According to an article published today in the Wall Street Journal:
"In less than seven years, Mr. Zhao and Poly Auction have risen to become unlikely major players in the art world. Controlled by Chinese state-owned conglomerate China Poly Group—which began as a unit of the People's Liberation Army—Poly Auction is China's largest art auction house and the world's third-largest peddler of valuable collectibles, after Christie's and Sotheby's.
"In less than seven years, Mr. Zhao and Poly Auction have risen to become unlikely major players in the art world. Controlled by Chinese state-owned conglomerate China Poly Group—which began as a unit of the People's Liberation Army—Poly Auction is China's largest art auction house and the world's third-largest peddler of valuable collectibles, after Christie's and Sotheby's.
Last year, Poly sold $1.9 billion in Chinese antiques, paintings, jewelry, coins, rare books and vintage baijiu (a Chinese sorghum-based liquor) among other items. While far from first-place Christie's—with its $5.4 billion in 2011 sales—Poly Auction has rocketed to third place since it was founded in 2005. (Christie's was founded in 1766.)
Dealers in Chinese art say that Poly, which sells primarily to Chinese buyers, is partially responsible for making China an increasingly important art hub. Last year, Chinese buyers spent $18.1 billion on art, overtaking the U.S. for the first time to become the world's largest art market, according to the European Fine Art Foundation. China now makes up 30% of the world's art transactions by value.
"The best works used to all go to Hong Kong. Now, they're coming to Beijing, and Poly has a lot to do with that," says Meg Maggio, owner of Pékin Fine Arts gallery.
Still, Poly and other mainland Chinese auction houses are dogged by accusations of fraud, market manipulation and the proliferation of fakes. Many Hong Kong galleries and western collectors accuse Poly of guaranteeing prices for sellers, allowing sellers to bid on their own works and selling fakes.
Poly officials admit the Chinese auction industry overall is rife with problems but they insist Poly's practice is up to standard.
Jiang Yingchun, general manager at Poly Auction's parent, Poly Culture, says he has heard of third parties bidding up prices at auction. "From an auction house perspective, we don't know if this is happening," Mr. Jiang said. "For us, if it's consigned and bid clearly and paid for, it follows the rules. It's difficult to prove this conspiracy."
As for fakes, Mr. Jiang said Poly tries to verify everything it sells. "But no auction house—even the Western ones—can guarantee that every piece is authentic," he said".
