Hong Kong May Surpass London as 2nd-Biggest Wine-Auction Market

Dec. 9 (Bloomberg) -- Hong Kong may overtake London this year as the second-biggest wine-auction market, behind New York, with sales of HK$496 million ($64 million), the Asian city’s Commerce and Economic Development Secretary Rita Lau said.

The scrapping of wine duties in February 2008 has spurred demand for the beverage, with 14 auctions held in the city since January, Lau said in a written response presented at parliament. Wines are also sold privately at stores and among individuals, she said. Lau didn’t provide comparative figures for London.

Christie’s International, Sotheby’s and Bonhams have resumed regular wine sales in the city since the duties were abolished. In October, Sotheby’s said Hong Kong has surpassed London as its second-largest market. Christie’s says it offers the best and priciest wines, such as first-growth Bordeaux, in the city because there’s demand. Hong Kong wants to be a conduit for selling to China, Lau said.

“We have seasoned professionals proficient in Chinese and English armed with years of experience in wine trading as well as conducting business in the mainland market,” she said.

To help grow the business, the government is devising a certification system for wine storage facilities that’s expected to surface before the year ends, she said. Companies have been installing storage space in industrial buildings to meet demand. The certification may later extend to cover vehicles for transporting the bottles, Lau said.

Hong Kong’s wine imports have increased 41 percent to HK$2.7 billion in the first nine months. The business is adding jobs, though there aren’t concrete figures yet, she said.