According to an Oct. 9, 2012 Art Radar Asia article, "Ashen Faces, groans as Chinese art bombs -- Sotheby's Autumn 2012 Contemporary Asian Art auction," contemporary Chinese art sales have seriously slumped while the market remains strong for premodern Chinese arts. The article also references several recent article elsewhere about the frauds rampant at Chinese art auctions in Mainland China and the increasing number of fakes of contemporary Chinese arts.
See the following articles on related topics:
Forbes article from 8/13/2012, "China's $13 Billion Art Fraud."
The Art Newspaper article from 7/18/2012, "Chinese art funds on risky road to maturity."