An Empirical Study On The Corelation Between Chinese Art Market Price Index And SSE Composite Index

In this "new normal" economy, more and more people attach importance to the lower consumption, lower pollution cultural industries, especially for a big province of culture like Shandong. Shandong government work report for 2015 clearly stated that “Promoting art and finance amalgamation, building an art and finance testing zone.” The art market is becoming an important investment field. Against this background, there are many domestic financial products and services based on artwork market. However, I have seen investment practice and financial innovations lack of right guidance because of the lagging empirical research. As a result, present art financial products are mainly investment and financing, lacking of products spreading the risk effectively. And domestic art financial products are still left far behind the developed countries such as European countries and America. The article chooses to use the exponent correlation between domestic art market and stock market as the subject to enrich art finance theories and broadened the scope of financial applications.According to “come up with hypotheses, verify the hypothesis, draw conclusions and guide practice”, this paper is carried out. First, this article takes investor behavior as a pointcut, using some theories as expectations gain hold and behavioral finance to analyze the economic relationship between art market and stock market. By analyzing the relationship, we draw a conclusion that is competition effect between two markets is more than wealth spillover effect, so that the two indexes show a negative relation. Next, through setting vector auto-regression model,we conclude that the interactions between two markets is asymmetric. Last, this article seeks to adopt its own in practice to explore the use of financial innovation.