Research On China’s Artwork Share Trading Mechanism

In recent years, because of the further development of China’s economy and theexistence of excess liquidity, majority of Chinese investors gradually strengthen thesense of investment and actively seek diversified investment channels. They allocatetheir assets effectively in order to spread the investment risks efficiently and in thehope of increasing the value of their assets. In this context, artwork investment market,which is booming in China, has begun to attract investors’ attention widely. In thepurpose of making up its three weaknesses: high entry barrier, professionalinvestment knowledge and poor liquidity, artwork investment market in China hascreatively designed a brand new product, which is usually known as” artwork share”.As soon as it’s issuing, artwork share has become domestic investors’ hot pursuit andits price has soared all the way, reaching a staggering peak. However, the madness ofartwork share trading did not last too long. Due to the imperfections and non-standardof the trading mechanism, the artwork share investment bubble eventually burst afterChinese government promulgated a remediation act. The crash of artwork shareleaves many lessons allowing us reflect.This dissertation mainly aims the research of artwork share trading mechanism inChina. Firstly, it introduces the overview of artwork share trading mechanism brieflyand discusses its trading patterns and listing process in details, moreover, itdemonstrates the extremely real situation of the current transaction through a vividcase discussion. Next part deeply explores three kinds of institutional barriers in theartwork share investment market currently; they are legal barriers, supporting barriersand trading barriers. Finally, this thesis provides systematic improvement suggestionsfor the further development of artwork share trading market in China from sixdifferent perspectives: legal framework, regulatory mechanism, supportingmechanism, trading mechanism, pricing mechanism and exit mechanism; and itcomes to the ultimate conclusions of the whole research.