International Art Exchanges: A Potential Path to Securitizing Art

This research investigates the possibility of securitizing art through international art exchanges with a case study of the Tianjin Cultural Artwork Exchange. By introducing the concept and definition of art exchanges and comparing the established models and the prelaunch ones, this theoretical study discusses the related issues, such as reducing the difficulty of liquidating art based on its unique characteristics in the traditional art market. Problems such as market efficiency and the actual risk and return of investing artworks in the art exchanges are also discussed based on the special structure of art investment. The relation between art exchanges and other financial assets in the market place is explained through a quantitative study of market data. A discussion on the suggestions of improving an art exchange concludes the paper by predicting the future development of such model.