Pilot art market a boost to investors
Source: Xinhua |
January 27, 2011, Thursday
|
Print Edition
Print Edition
A pilot art market opened yesterday in north China's Tianjin Municipality to allow small investors to buy shares in the ownership of art works previously traded only in auction houses by the super rich.
The market, operated by the government-backed Tianjin Cultural Artwork Exchange, is considered a financial innovation by the Tianjin municipal government.
"China has no precedent and neither does the world," said Chen Zongsheng, vice secretary-general of the municipal government.
Investors - both individuals and institutes - can trade shares in art work just as in the stock markets. Pieces up for public trading include paintings, calligraphy, sculptures, and handcrafts.
The market is a new way for rich Chinese to invest. Rising inflation and limited investment opportunities have forced many Chinese to put their money into the property market, sending home prices to record highs.
A central bank survey conducted last year showed that 75.5 percent of respondents said the current property prices are too high to accept. About 45.2 percent said they intend to invest more for the future, with only 37.6 percent willing to deposit their money into bank accounts.
"The new investment market is good news for ordinary Chinese who have money to invest," Chen said.
He said China has limited financial investment channels compared with developed countries.
Experts said the pilot program notably lowered the threshold of investment in China's booming art and antiques market, which is dominated by big players.
Beijing-based Poly International Auction Co Ltd, a leading domestic auction house, saw turnover of fine art and antiques at 5.28 billion yuan (US$794.6 million) at its 2010 autumn auction. Two items were sold at over 100 million yuan and 99 items over 10 million yuan.
Shares in two traditional Chinese paintings were offered for sale on the Tianjin market yesterday: one valued at 6 million yuan and the other at 5 million yuan. Ownership was divided into 6 million shares for the first and 5 million for the other, said Wang Mingda, an official with the exchange.
"Investors are very enthusiastic and trading has been active since the market opened at 9am," Wang said.
The exchange has placed a 15 percent one-day price-fluctuation ceiling on artwork share prices. That compares with 10 percent for the stock market.
The value of one of the two items traded yesterday opened at 1.2 yuan per share and closed at 2.01 yuan.
More than 7.3 million shares worth 14.1 million yuan for the two items traded in the first day.
According to the market's rules, an investor who buys up to 67 percent of an artwork can require the purchase of the remaining shares from other investors.
The market, operated by the government-backed Tianjin Cultural Artwork Exchange, is considered a financial innovation by the Tianjin municipal government.
"China has no precedent and neither does the world," said Chen Zongsheng, vice secretary-general of the municipal government.
Investors - both individuals and institutes - can trade shares in art work just as in the stock markets. Pieces up for public trading include paintings, calligraphy, sculptures, and handcrafts.
The market is a new way for rich Chinese to invest. Rising inflation and limited investment opportunities have forced many Chinese to put their money into the property market, sending home prices to record highs.
A central bank survey conducted last year showed that 75.5 percent of respondents said the current property prices are too high to accept. About 45.2 percent said they intend to invest more for the future, with only 37.6 percent willing to deposit their money into bank accounts.
"The new investment market is good news for ordinary Chinese who have money to invest," Chen said.
He said China has limited financial investment channels compared with developed countries.
Experts said the pilot program notably lowered the threshold of investment in China's booming art and antiques market, which is dominated by big players.
Beijing-based Poly International Auction Co Ltd, a leading domestic auction house, saw turnover of fine art and antiques at 5.28 billion yuan (US$794.6 million) at its 2010 autumn auction. Two items were sold at over 100 million yuan and 99 items over 10 million yuan.
Shares in two traditional Chinese paintings were offered for sale on the Tianjin market yesterday: one valued at 6 million yuan and the other at 5 million yuan. Ownership was divided into 6 million shares for the first and 5 million for the other, said Wang Mingda, an official with the exchange.
"Investors are very enthusiastic and trading has been active since the market opened at 9am," Wang said.
The exchange has placed a 15 percent one-day price-fluctuation ceiling on artwork share prices. That compares with 10 percent for the stock market.
The value of one of the two items traded yesterday opened at 1.2 yuan per share and closed at 2.01 yuan.
More than 7.3 million shares worth 14.1 million yuan for the two items traded in the first day.
According to the market's rules, an investor who buys up to 67 percent of an artwork can require the purchase of the remaining shares from other investors.
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