Research On Investment Risk Of Art Market

As an integral part of the art industry, the art market investment has now become one of the three modes of major national economy investment followed the real estate investment and securities investment. With the art market investment booming, all kinds of risks in the art market investment also gradually cause the attention from all walks of life.First of all, based on the research of the development of China’s art market, market scale, market structure, this article points out that china’s art market presented the trend of diversification, the electronic commerce, financialization, internationalization and profitability.Secondly, this article t analyzed the price forming factors through two angles, the similarity as the goods of commonality, the individuality as a special investment method. Its own value was determined by its creation cost, storage cost and sunk cost. The text used Hedonic pricing model to do the quantitative empirical analysis; while transaction price of artwork were often influenced by the macro economic, financial environment, market information asymmetry, comprehensive factors such as consumer preferences and investment expected effect. Sometimes there will be a phenomenon that prices deviate from the law of value.Thirdly, starting from particularity of art prices, the moral risk caused by market information asymmetry phenomenon, the lack of professional knowledge and talents, the instability of macroeconomic factors and lack of specification, this article studied l a serious risk of authenticity, storage cost, risk caused by preference transfer, price volatility risk, settlement risk and other risks, which to some extent hindered the rapid growth of the art market.Although the government formulated relevant policies and regulations in the field of art since the 1990 s, and introduced a series of cultural industry policies to support the development, there still exists some problems, such as construction lag in the art market investment management system, imperfect supervision and legal system, lack of identification and appraisal institutions, necessary insurance system is not perfect, the withdrawal mechanism is not molding and so on many problems arising from the risk control process. To solve those problems, this paper finally proposed the risk coping strategies of the art market in our country respectively from the two aspects of macro and micro in order to promote the healthy development of the art market in China.