Research On The Individual Investment Strategy Of Chinese Art Market

With the rapid development of China’s economy, people’s investment demand is also higher and higher, the art market as the third largest investment market tied with stocks, real estate, more and more attention by investors. China’s investment in art works late. In the academic circles, including the existing of investment research institutions and scholars, mainly of the painting and calligraphy class investment as the object of study and other investment sectors, including: porcelain, sculpture, jade, jewelry, furniture, etc. involves less. As a result of the need for strong professional knowledge of art investment and investment risk is greater, in a long period of time before the ordinary investors have been. First of all, from the point of view of the investors, for investors is to obtain profit through investment in works of art, works of art investment is different from other financial investment products, which is mainly through the acquisition of the sale price, namely capital gains profit. Whether to choose the best investment strategy to reduce investment risk, will run into the key to the investment is the key. Secondly, the main problem that investors enter the art market is the information asymmetry, the related service facilities are not perfect, the liquidity is low, the market participants’ limited rationality and opportunism and so on. And the choice of investment strategy is to solve these problems. Finally, China’s art market due to the development of late, there is no mature market mechanism, the performance of the one or two market does not match, the matching system is backward, etc.. Through the study of investors can improve the market system, as well as the healthy development of the market to provide help.In this paper, firstly, we analyze the irrational behavior and asymmetric information in Chinese art market, and explain the characteristics of information asymmetry in different markets. Secondly, this paper tries to find out the risk point of individual investment in art by analyzing the investment cycle of individual investors and the investment characteristics of different investors. Finally, according to the problems in the investment of individual investors in the Chinese art market, some suggestions are given.Through the research on the investment strategy of the art, the following conclusions and results obtained: first, the study found that art as a kind of investment goods, its own investment attribute and attribute value is relatively special, and with the stock market and other investment goods market less relevant, to a good part of as an investment portfolio, to spread the investment, reduce investment risk, improve the return on investment. Second, through the art investors through different wealth levels are divided into three categories, for each class of art investors gave different investment proposals. Third, according to the characteristics of the investment works of art, is presented in this paper to improve the art investors investment quality, rational use of laws and regulations, through the third party organization to improve investment efficiency etc. suggestions, these suggestions from different angles solves the problems faced by individual investors in the investment process.