The value of rare Chinese stamps is increasing faster than China’s economic growth, according to UK-based stamp sellers Stanley Gibbons.

The average annual compound growth rate for a sample of 200 Chinese “heritage rarities” was 11.6% for the period since 1989. The stamps, worth £358,254 in 1989, were valued at £4,497,400 in 2012.

“Some of the recent growth can be credited to Chairman Mao – but not necessarily for the right reasons,” says Keith Heddle, Group Marketing & Investment Director at Stanley Gibbons. “He banned stamp collecting as being ‘bourgeois’. However, the Chinese, with new found freedoms as well as wealth, are eager to reclaim their heritage.”

Stamp sales inside China have been rising in value even faster — at up to 44% per year — but Heddle suggests such numbers be viewed with caution.

“Some PRC material has been growing in price too rapidly, irrespective of quality,” says Heddle.

“Often, items were subject to speculation or being presented as gifts, which can create an artificial acceleration in the market.”

That’s why we excluded PRC material from the study. For an authoritative merchant like Stanley Gibbons, we wanted to ensure we continue to focus on quality, authenticity and the type of rare material that is likely to perform consistently over the long term.”

Stanley Gibbons report that 64% of China’s millionaires are currently building stamp collections, contributing to the market’s strong growth. Stanley Gibbons has set up offices in Hong Kong and Singapore to capitalize on developments in the region.