Regulation needed in auction market

These days, an antique or work of art can be auctioned for a surprising price of millions. High profits are drawing more and more people into the business. But insiders say prices can be manipulated, and not every piece in every auction is authentic.

China's modern art market has truly been flourishing in recent years.

At an auction, one contemporary painting can be sold at a price ranging from hundreds of thousands of RMB ... all the way into the millions.

Insiders say such high prices are unreasonable.

Xie Xiaoquan, director of Art Dept., China National Museum, said, "China's contemporary art has reflected the country's huge social changes in recent years. So there are definitely some excellent works. But we also have to use our own judgments. In my opinion, it should take some time to decide whether the piece is good or bad."

And the prices are often manipulated.

For instance, one buyer can purchase all of an artist's works outright, and then put just one or two on the market. When the price goes up to his satisfaction, he might then sell all the others.

Besides paying a high price for something not quite worthy, even more risks accompany auctions.

Xie Xiaoquan said, "A couple of years ago, I went to an auction in Shanghai. I think 90 percent of the works were not real."

In the face of a badly-regulated auction market, experts are calling for more consideration, prior to purchase, for those who want to invest in works of art or antiques.