The buoyant auction market for Fine Wine has long been an exciting way both to buy and sell Investment Grade Wines with 'paddle fever' undeniably playing a large part in contributing towards the upper end of prices paid.

Nevertheless, it has been found in the past that there can also be a lack of consistency when it comes to clearly defining the way reserve prices are set, meaning the auction place has consisted primarily of collectors and enthusiasts looking for a potentially good deal. For example, those seeking a bargain may have been inclined to walk the auction path in the hope of achieving advantageous prices on wines that have yet to reach drinking maturity and are normally only in this environment owing to lack of market knowledge or poor advice.

However, as a result of the seismic change to the taxation on wines and spirits last year in Hong Kong, we are seeing a new trend start to emerge. There is no disguising the ongoing love affair between the Asian market and particularly Classified Bordeaux wines as it is this considerable and ongoing interest that underpinned the market, leading to a relatively rapid recovery from the downturn experienced in late 2008.

The auction houses were quick to take note with Sotheby's, Christie's and Acker Merrill being the most prominent to ensure their presence was felt in this new market displaying quite different characteristics to the more established auction 'capitals' of London, New York and Paris.

Those responsible for 'waving paddles' in Hong Kong, (and subsequently mainland China), have, so far, done so with a different intent; that is to drink the wine as was found when a number of winning bidders where interviewed as to there intentions. With the wealthy wanting to be seen to be wealthy, bargain hunting is not necessarily on the agenda and as we have seen, such posturing can lead to fantastic sums being bid for the very same wines that have not yet reached their drinking window.

One could argue that with the reduction in tax to zero, the Chinese may feel that they are in fact saving enormous sums of money, even taking in to account the premiums being paid. One recent example saw a case of Ch. Lafite Rothschild 1996, holding a perfect Parker grade, achieve the equivalent of £9889.00 sterling compared with the sub £8000.00 figure that is charged by many merchants in the UK. It would seem that regardless of geography, wines at this level are and will continue to be desirable both to those who can afford to drink them as well as those keen to benefit from the fundamental supply and demand equation that governs this market, maintains the equilibrium and ensures its resilience against even catastrophic economic factors.