• A stack of seven compressed cakes of Tong Xing Hao Puer tea from the 1920s went for HK$8.4 million (US$1.08 million) at autumn auction
  • Surge in prices has followed recent phenomenon in collectibles and memorabilia, from liquor to limited-edition sneakers
  • Drinking Puer on a regular basis is said to help lower blood sugar and cholesterol, reduce obesity and boost immunity. A pastime for some ethnic minorities in China, it was not popular until it caught the attention of the imperial families in the later years of the Qing dynasty (1644-1912).

Vintage Chinese teas are making a mark for themselves in Hong Kong’s auction scene, with investors and collectors paying record prices, defying the gloom in a city hamstrung by months of political upheaval and a recession.

A stack of seven compressed cakes of Tong Xing Hao Puer tea from the 1920s went under the hammer for HK$8.4 million (US$1.08 million) before fees on November 24, according to auctioneer L&H Auction. Local and mainland Chinese bidders drove the price to the upper end of its estimate of between HK$5.8 million and HK$8.5 million, according to Zhou Zi, founder and chief executive of the Causeway Bay auction house.

That works out to be a cool 14.4 per cent compound annual growth from Zhou’s estimate of HK$10,000 for its value in 1970. The appreciation is respectable compared with a 10 to 13 per cent annualised gain in Hong Kong and US benchmark stock indices over that time, or a 3.2 per cent gain from a basket of 23 commodities tracked by Bloomberg.

“Vintage Puer can be an investment vehicle because the value will keep appreciating,” Zhou said in an interview. “It cannot be copied, it is a consumable product with depleting supply over time and it tastes better as it ages. These factors will keep the market on the up trend.”

At the November 24 autumn auction, several other lots of Puer teas also fetched the upper end or went above their valuations, L&H’s Zhou said. They included the red-marked Puer from the 1940s and 1950s, and the Baba Qing Puer produced in the 1980s and 1990s.

Drinking Puer on a regular basis is said to help lower blood sugar and cholesterol, reduce obesity and boost immunity. A pastime for some ethnic minorities in China, it was not popular until it caught the attention of the imperial families in the later years of the Qing dynasty (1644-1912).

To avoid falling into a speculative trap, investors should pick authentic, high-quality products and brands with liquidity, reputation and limited editions, he said. Trading at trusted and sizeable auction venues is also advisable, he added.

Reference

[Written by Snow Xia – South China Morning Post]