Financial Innovation And Risk Control In Cultural Assets And Equity Exchanges

Since the Cultural Assets and Equity Exchanges(CAEE)were established in China,they have experienced both boom and bust stages.Due to the chaos in the artwork securitization process that occurred in some CAEE,the government issued the No 38 Regulation aiming to provide more clear guidance for the industry.Yet further reform,financial innovation,strong government support,and a robust macro-economy are necessary for the industry to experience further growth.This paper examines the financial innovations and risk control for the CAEE industry with a particular focus on the artwork and movie area.The analyses also provide guidance for the artwork securitization process and lay out principles for future financial innovation.Furthermore,we propose some potential business models for collaborations between the cultural assets and equity exchange and other financial institutions.