The museum, which boasts a collection of more than 10,000 precious cultural relics and art works, is now losing 140,000 yuan (US$17,000) per month as the result of the lack of visitors, according to reports from the China News Agency.

"My only way out is to sell the museum," said Luo Huanxin, owner and curator of the museum in Kunming, capital of southwest China's Yunnan Province.

Founded three years ago, the Hanrongxuan Museum is among the roughly 100 private museums in China -- a product of the growing public passion for art collection.

Over the past decade, the number of private museums in China has been growing rapidly.

In the city of Beijing alone, there are eight private museums, including the Guanfuzhai Ancient Furniture Museum, the Mumingtang Ancient Porcelain Museum and the Heyang Wuqian Modern Art Museum.

Famous private museums in China also include the China Sex Museum in Shanghai, the Yongyi Ancient Furniture and Porcelain Museum in Sanshui, in south China's Guangdong Province, and the Shanghe Art Museum in Chengdu, in southwest China's Sichuan Province.

Although Luo Huanxin's Hanrongxuan Museum has got into financial trouble, founders of other private museums are still optimistic about their operations.

"Private museums are long-term investments. The mass craze for cultural products will come soon," said Lu Dongzhi, curator of the private Ancient Porcelain Museum in Beijing.

"Operating a private museum is different from operating a restaurant or a hotel. The number of visitors is not necessarily decisive," said Lu.

A major source of income for private museums should come from the circulation of art works, not from tickets and the museum shop, according to Beijing collector Liu Dan.

According to Liu, Luo Huanxin is in financial difficulties partly because he is never willing to sell anything important in his collection, while a mature collection should "sell a bull to buy a horse."

However, there are loopholes in the law concerning private museum's circulation of art works.

Some private museums are selling cultural relics under the camouflage of operating "museums," which is forbidden by the law, according to Ma Zishu, curator of the Lu Xun Museum in Beijing.

Chinese law stipulates that unearthed cultural relics that date back earlier than the 18th century cannot be sold, not even in auctions or special cultural relic shops.

But there is no law saying whether it's legal or not for a private museum to collect unearthed cultural relics.

Amendments are being made to the existing Cultural Relics Law, which does not suit the present situation, according to Liu Chaoying, official of the Beijing Municipal Cultural Relic Bureau.

Liu says the Beijing municipal government supports the development of private museums vigorously, but also cautiously.

The Shanghai municipal government has taken measures to encourage the founding of "all kinds of museums."

The Kunming municipal government is reported to have drafted a ruling to give private museums tax preferences or even exemptions.

"Private museums are a necessary supplement to public museums," said Liu Chaoying.

"Private museums cannot compete with some public museums in the importance of their collections, but they can compete with them in service," said Jiang Yu, an investor in the Mumingtang Ancient Porcelain Museum.

Jiang's museum focuses on the museum's role of teaching. It has trained guides to give visitors detailed explanations, and holds regular lectures on the appreciation and collection of ancient porcelains.

"Private museums in China are still an experiment by some bold souls. Visitors are still few and we need support from the government and the public," said Jiang.

(China Daily July 17, 2002)