In an era of global integration, the world is experiencing an unprecedented transformation, bringing about significant changes that have accelerated over the past century. Members of the overseas Chinese community are increasingly recognizing their role as a bridge between China and the West, leading to a growing demand for wealth management and successor training.

On October 12, the Huangpu District Overseas Chinese Federation in Shanghai collaborated with Fudan University’s International Finance School to host an event titled “Star Overseas Chinese Appointment: Observing the Shadow, Not the Form—The Art of Collecting and Investing in Art” at the “Star Overseas Chinese Club” on Jinghe Island. This initiative aimed to gather insights from various sectors to help the new generation of overseas Chinese enhance their understanding of wealth management, the attributes of art, and investment strategies.

One of the keynote speakers was Professor Huang Wenyue from Fudan University, who also holds a faculty position at Yale University. He highlighted that over the past decade, fluctuations in the global art market are quite common, emphasizing that economic cycles are an inevitable reality. He advocated for seeking new value and opportunities amidst these fluctuations. Unlike stocks and mutual funds, the pricing of art is typically delayed in response to market changes; however, renowned pieces tend to demonstrate resilience against risks, making them a suitable option for diversified asset allocation.

“Works that sell for high prices in the market must possess high aesthetic value, yet not all aesthetically valuable pieces can command high prices,” Huang explained, using classic artworks to illustrate his point. He discussed why the “Mona Lisa” is considered one of the greatest artworks of the Renaissance. “Before this period, paintings were primarily flat. However, during the Renaissance, particularly with the ‘Mona Lisa,’ the use of perspective and three-dimensional expression transcended previous painting techniques. Surpassing established art forms is a significant challenge, especially when trying to exceed those that have already reached a certain level of excellence.”

As art continues to evolve, the phenomenon of “a piece of tape securing a banana” fetching a high price raises questions. Huang attributes this to the fact that buyers are not merely purchasing the artwork itself but rather the artistic concept it embodies, which is where real value lies.

According to Huang, the motivations for art collection and investment often differ; they can be likened to two parallel lines with minimal intersection. “A valuable collection does not necessarily equate to a good investment. It’s essential to clarify one’s objectives regarding the artworks,” he noted. He also outlined four key criteria for art collecting: authenticity, representational significance, accessibility, and liquidity.

During the event, attendees from the Huangpu “Star Overseas Chinese Club” engaged in interactive discussions with Huang, fostering a vibrant exchange of ideas.

Wubin, the chairman of the Huangpu ‘Star Overseas Chinese Club,’ provided insight into the group’s composition. “Our members are primarily young descendants of overseas Chinese, second-generation expatriates, and inheritors of family businesses. They represent a politically conscious, economically capable demographic committed to societal responsibility, cultural literacy, and managerial skills across various industries, including real estate, finance, healthcare, technology, food service, and culture. They actively contribute their strength to unite and develop the young overseas Chinese community in Huangpu.”