Christopher Silvester

INVESTMENT SPECIAL: Rising in the East

Chinese demand boosts returns for wine investors

issue 19 March 2011

The last time I wrote about wine for these pages, the global recession still lay ahead of us. In June 2008, fine wine prices were soaring on the back of the decision by the Hong Kong government to abolish import duty on wine (previously 40 per cent, and prior to that 80 per cent). The huge Chinese market was just starting to open up. Since then, wine prices have weathered the recession well, fulfilling the old adage that fine wine is the last asset class to fall in value and the first to rise.

With record auction prices recorded in Hong Kong in January — Andrew Lloyd Webber’s collection of 8,600 bottles sold for £3.5 million, well above the £2 million estimate — it is still the case that brand reputation trumps quality of vintage for many Chinese buyers. They are currently obsessed with leading Bordeaux brands from the left bank of the Gironde estuary.

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