How To Play Everyday Art Stocks?

　 Securities and antiques are the two most difficult industries in China. Will the combination be negative or positive, or will it be even more difficult?

In the past two or three years, the art market has brought countless surprises to people: soaring prices, attractive rates of return, and fascinating myths of wealth. But at the same time, it has also caused endless regret: in the background of "billion dollar era", the threshold height of "art" has long been out of line, and more and more people are blocked outside the door of art collection and investment.

Of course, they can not escape the sharp smell of the capital market, so they launched a series of "art financial products": Art trust, art fund, art "stock"... So that more people can share the wonderful investment opportunities in the art market.

However, When art meets Finance What will happen? In China, there are two industries that can tell stories and are hard to say clearly: one is securities, the other is antiques. When these two are combined, God knows how hard it is to get a clear answer.

　　 "Art stocks" Rose 17 times in 50 days.

In January 26th of this year, the "Tianjin art exchange" launched by the Tianjin cultural exchange (art exchange) launched the "art share trading" product. The first time it was launched by the famous painter Bai Gengyan's two paintings, the Yellow River roaring and Yan Hui Qiu. The two works are valued at 6 million yuan and 5 million yuan respectively, the issue price is 1 yuan per share, and the corresponding investment share is 6 million and 5 million.

The so-called "art share trading", also known as the "art rights split spanaction", namely, the "ownership of art" into "a number of equal parts", investors can buy "share" to get the proceeds of art appreciation accordingly. That is to say, we buy the artwork together and share the profits or risk according to the size of the capital contribution.

At the same time, these "shares" can also be circulated on the trading platform of the Tianjin literary exchange. Investors can get extra returns by buying and selling spreads. The industry also calls this product "art stock", which effectively solves the problem of "ordinary investors can not participate in investment in art because of small amount of money".

In fact, "artwork stock" is not the first creation of the Tianjin literary exchange. The Shenzhen literary exchange has tried this way before. However, due to the fact that art collections and investments were far less than today's hot spots, the reasons for the choice of art and the way of investment did not cause much repercussions.

However, the two "Tianjin cultural exchange" Art stock "Because of the" heaven, earth, people and "and the blockbuster. As of March 16th, the Yellow River Roar (20001) and Yan Hui Qiu (20002), which had 1 yuan in issue price, were closed at 17.16 yuan and 17.07 yuan respectively, less than two months, or more than 1600%, and the price reached 17 times the issue price.

These two works, which were originally priced at 6 million yuan and 5 million yuan respectively, are now soaring to 102 million 960 thousand yuan and 85 million 350 thousand yuan respectively.
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According to press reports, the highest spanaction price of Bai Gengyan's other works in the auction market is not more than 4 million yuan. With the help of "the magic of securities", the price of the "Jin Pai" painter born in 1940 has been priced at a price comparable to that of Qi Baishi, such as Zhang Da Qian and Xu Beihong.

Just when people were scared and slightly envious, they issued the second batch of works of art "stock" in March 11th, including 7 paintings by Bai Gengyan, a painter of Tianjin landscape painting, and a 4.34 carat flour drill, with a total price of 53 million yuan, and the issue price was 1 yuan each. "Tianjin" Among them, 4 million yuan, "5 million yuan", "4 million yuan", 4 million yuan, "Han Han Wu Ji" 4 million yuan, "noisy boulders" 4 million yuan, "Taihang Qiu Mu" 4 million yuan, "sea surges" 4 million yuan, 4.34 carat flour drill 24 million yuan.

This time the trend is even more alarming: as of March 18th, although only 6 short trading days have passed, the closing prices of the eight "art stocks" are all 4.34 yuan, or 334%, because the eight "stocks" are only trading daily. And the turnover rate is very low, so investors are quite confident of the future trend of "art stock".

Such a vigorous increase and trend should be enough to make the real stock market on the A share market, and even the "big bull stocks" are ashamed. According to the reporter's understanding, the number of "art stock" investors who have opened accounts at the Tianjin literary exchange has exceeded 40 thousand, and the investment threshold has also been adjusted from the initial 50 thousand yuan to 500 thousand yuan.

For such a hot "art stock", Gong Jisui, a professor of art management at China Central Academy of Fine Arts's humanities college and a senior art market research expert, told China Economic Weekly that he is currently holding a "cautious wait-and-see" attitude.

"The so-called" art stock "is a new thing, the parties are very concerned about, all kinds of voices are many, also involves many aspects of interests, but to get a decision without haste, may also need to observe. Gong Jisui said.

The reporter then consulted several senior analysts of several securities companies. Although they did not want to be named, most of them said: before the listing, real stocks need to go through many links such as accounting firms, investment banks, issuance examination committees and so on. Investors can also understand the intrinsic value and fair value of stocks through the financial statements of enterprises, and more importantly, the supervision of the relevant departments of the state and the restriction of numerous laws and regulations. However, this new "art stock" does not have such a complete, open, fair and just value assessment system. There is also a blank in the law and government regulation, so the risks and uncertainties will be great.
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　 The scale of Art Fund will exceed 1 billion 500 million

Compared with high-profile "art stocks", the development of the art fund is much more understated, but the scale and speed of development are no exception.

In July 2007, the "special financial yuan - Art Investment Plan No. 1", issued by Minsheng Bank of China, is the first truly artistic fund. This two-year investment fund has an absolute return of 25.5%, which is almost the same as that of all banks in the same period. By the end of 2009, China Minsheng Bank also launched the "extraordinary asset management - Art Investment Plan No. 2", and the scale of 200 million yuan was quickly "full".

The first private art fund in China was released in May 2009 by the terry Arts Fund Limited partnership. There were 17 investors in this period, with a scale of 10 million yuan. At present, "Red Coral phase I" has announced the first annual yield of 31% after Ernst & Young audit. The launch of the "Red Coral two phase" is expected to achieve an annual yield of 15%, a closed period of 5 years, and an investment threshold of 500 thousand yuan.

The reporter learned from the responsible person of Terry arts fund that the fund will launch "three phases of Red Coral" in March, with a scale of 15 million yuan to 20 million yuan, a period of 5 years (closed) and an investment threshold of 1 million yuan, with an expected annual yield of over 10%.

"Red Coral three phase" will mainly invest in contemporary art, twentieth Century Chinese oil painting, calligraphy and painting three plates, the former two plates accounted for 40% to 45%, the painting and calligraphy plate due to price inflation in recent two years, the future will face greater market volatility risk, so the proportion of the proposed configuration is relatively low, about 10%.

Under this impetus, a number of domestic trust and private placement art funds quietly appeared and developed rapidly. In 2010, it was also called "the first year of China Art Fund". According to the estimate, the scale of China Art Fund will exceed 1 billion 500 million yuan in 2011.

According to the reporter's understanding, at present, the most famous art funds in China are the national trust, Beijing Tongxin Hui, de Mei Yi Jia, Beijing Fu Wen, Zhongyi Da Chen, Shenzhen apricot stone, zhongboya, New York Morti Fu Arts Fund and so on, raising funds from tens of millions to hundreds of millions of yuan. The main investment direction is Chinese modern calligraphy and painting, contemporary art, palace art and so on.
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The way to finance "art"

Journalists have consulted many art market authorities, industry experts and some artists on the recent hot "art stock" and "Art Fund". They are very modest to say that they understand some works of art, but they have no systematic research on Securities and finance and have not done any systematic research on these new things, so they have no say. But almost all investors are advised to be very cautious when they participate.

"There are mainly three kinds of traditional works of Art: one is auctions, the two is purchased or sold through galleries and picture shops, and three is private or through brokers for non-public spanactions." Kou Qin, vice director general of China auctioneer Industry Association and vice president of China Guardian International Auction Co., Ltd., told China Economic Weekly.

"But now there are some new forms in the art market, especially some new ones. Art financial products We do not exclude new exploration, but no matter what kind of innovation, we need to follow and respect the law of the art market itself, instead of simply moving the universal economic laws and economic tools directly to the art market. Kou Qin said.

He believes that works of art do have the attributes of commodities and can be used for investment, but they are not entirely commodities, because the art trading market is a very historic market with its own development law.

"In the past, the concept of collectors was more emphasized in the art market, especially in mature markets abroad, but recently many people in China are more concerned about investment, or even focus on investment. If this is the purpose, it is better to invest directly in products with pure investment attributes." He said, "as far as I know, even in the mature art market abroad, the financial art investment mode is not the mainstream."

"If there is Investor If we have to intervene, we must buy the art fund and trust products approved by the relevant government departments and be effectively supervised, and we must have our own judgement. " Kou Qin said. He also suggested that those who can not afford to buy big things but are interested in the art market, the first choice is to buy "good, but not popular" works, such as some of the works of college students, some of the more popular miscellaneous items.

"We often joke that securities and antiques are the two most difficult to say in China. Now, if you want to combine the two, it is still more difficult to solve the problem. Maybe we still need to think together." Kou Qin said.