Can China's contemporary art market survive or even thrive during the present global financial crisis?

The bad news includes shrinking sales of Chinese art works since last autumn and the closing of many small or medium sized galleries over previous months.

This week the Beijing Culture and Development Fund announced the establishment of the Art Beijing Fund and Research Fund on the Literature of Chinese Modern and Contemporary Fine Arts to support Chinese galleries, artists and professionals.

The fund of 5 million yuan ($731,314) will focus on supporting galleries, planning academic exhibitions and sponsoring events like the annual "Art Beijing Contemporary Art Exposition" this spring.

The Special Fund for Research on the Literature of Chinese Modern and Contemporary Fine Arts, meanwhile, will be involved with research, collecting, preservation and researching literature of the Chinese modern and contemporary fine arts scene.

For instance, it will be used to sponsor and support publications and the research paper: "The Series of the Literature of the Chinese Modern and Contemporary Fine Arts". It will also organize exhibitions for Chinese Modern and Contemporary Fine Arts; promote a series of public educational activities in the form of forums, yearly meetings and seminars; to provide research year books or other form of publications.

It will also establish awards for research into Chinese contemporary art; and promote the healthy development of Chinese contemporary arts.