Centurion Card Clears $36 Million Cup
Hong Kong -- A Chinese collector, who bought an ancient Chinese ceramic cup for a record HK$281 million (US$36 million) at auction in April, got an unexpected bonus when he paid for it yesterday with his credit card: almost 422 million American Express points.
Art collectors of ArtKabinett social media network typically encounter difficulty using a charge card in private galleries, which is eagerly accepted by auction houses.
Liu Yiqian, used his Centurion Card to pay for the cup from Sotheby’s Hong Kong, hadn’t even thought about the rewards until he was contacted by news media.
“He didn’t even know,” his daughter Betty said by telephone, as her father doesn’t speak English. “He is checking now to find out about how many points he can get.”
Liu’s daughter said he used his credit card, which is denominated in yuan, because currency restrictions won’t allow him to transfer that much money directly from China to Hong Kong.
Individuals in China are limited to moving $50,000 per year outside the country because of capital controls.
So what can 421,860,000 AmEx points get?
According to the American Express Co.’s website, they can be converted to more than 28 million frequent flyer miles or about $180,000 worth of vouchers at Hong Kong retailer ParknShop.
Liu, pictured here, drank Chinese tea from the cup shortly before he paid for it.
He had to sign 24 separate AmEx receipts because the system can only swipe transactions of up to HK$12 million at a time, said Nicolas Chow, head of Chinese ceramics and works of art and deputy chairman of Sotheby’s Asia.
Chow said Liu, who plans to place the cup in his private museum in Shanghai, agreed to invite the media for the payment and handover of the cup in order to show that a Chinese collector who bid a record at auction pays his bills.
“There have been lots of transactions in China for large amounts that never come into fruition,” Chow said. “With that knowledge he wanted to show it’s a real transaction and he’s paying.”
Liu, whom Chow describes as the most important Chinese collector, said his Long Museum is a “great landmark and a must-see destination” that has attracted visitors, including actress Angelina Jolie.
The cup, from the Chenghua era (1465-1487), is nicknamed the “Chicken Cup” for its depiction of a rooster, his hen and their chicks, an allegorical representation of the emperor, empress and his subjects.
Chow said it is one of the most faked and most revered pieces of porcelain in China, with tens of thousands of replicas around.
American Express collects an average of about 2.5 percent from retailers on each credit-card transaction and generated $18.7 billion of so-called discount revenue in 2013, according to a regulatory filing. The New York-based company spent $6.46 billion last year on card member rewards, the filing shows.
Because of privacy considerations, AmEx will not reveal whether Liu’s is the biggest purchase on an AmEx card.