Fear of economic bubble and empty wallets behind closure.

The art scene in Beijing is in trouble, experts say, with the 798 Art District suffering from an economic freeze to match the season's bitter weather.

More than 80 percent of some 200 art galleries in the city's most famous art district have lost money this year, according to Adam Lin, a gallery owner at 798 with more than 15 years in the business.

Lin told METRO he has personally lost around 70,000 yuan already in 2009, and most small- and medium-sized galleries are facing the same situation.

"The art market has its own economic bubbles and people are now worrying about when they might burst. Most foreign buyers have less money because of the financial turbulence," he said.

"In addition, 99 percent of the Chinese buyers in China's art market are investors rather than collectors. The first thing they ask when checking out a piece is whether the value would increase or not. When the market is gloomy, they turn their backs on it immediately."

Li Guoqiong, a clerk at the Red Rose White Rose gallery at 798, told METRO she hasn't been able to sell a single piece for the last three months. She compared it to 2007 when she could easily sell two to three pieces every month.

Li said she knew of five galleries in her area that had shut up shop over the last year, and several others that had moved out into cheaper locations.

"Although we have lowered the price of each piece, buyers still try to cut the price in half," she added.

Chen Yongli, director of the managing committee at the 798 Art District, said in a speech earlier in the year that China's art market had slipped drastically after its peak in 2008.

To aid the situation, the managing committee and gallery owners gave out 5 million yuan in subsidies to needy art organizations, Chen said.

And painters are also suffering from the chilly market.

Fang Min, a signed painter at Shangzun Gallery in 798, told METRO he only sold two to three paintings this year.

In 2007, he sold a dozen.

"In order to make ends meet, I sold once a 10,000-yuan piece for just 3,000 yuan. I had no choice," he said.

However, Zhou Shuangcheng, president of a Beijing auction company, told Xinhua News Agency in October that artists generally churn out similar pieces during affluent times to make more money. He believed tougher times might help stimulate creativity.

"When these bubbles disappear, we will have a healthier market," said Zhou.

And on another plus side, many experienced collectors are cashing in by buying up scores of works from young and talented painters at low prices, Lin said.

He added that he has spent around 400,000 yuan to purchase art pieces this year, and estimates his investment would triple in five years.