Research On The Role Of Grading Service In Chinese Paper Money And Coin Collection Market

The problems existing in the art collection market,including paper money and coin collection market include: first,true or false issue;second,good or bad issue;difficult to preserve;opaque price;insufficient liquidity,resulting in poor trading.The information asymmetry has led to market failure for a long time,which has seriously hindered the development of paper money and coin collection market.In this environment,the third party identification and grading business has emerged.Through professional,open,transparent and considerable judgment,the grading service fully solved the problem of information asymmetry in the market.With the arrival of international currency appraisal firms and the rise of domestic Rating firms,grading business has developed rapidly in China,and has become an important part of the service system of the paper money and coin collection market.Taking King of Fluorescence for example,the purpose of this paper is to makes qualitative and quantitative analysis and research on the role of grading service in this market,and analyze the positive effect of the grading business on the information asymmetry of this market through empirical analysis,and give the rationality suggestion of standardizing and promoting the healthy development of the rating business.Firstly,this paper makes a brief introduction to the research purpose and significance,and the concept of asymmetric information and market failure,the solution of information asymmetry and introduces the related concepts of the Chinese paper money and coin collection market.Secondly,this paper briefly has reviewed the history of Chinese paper money and coin development and the history of paper money and coin collection,and has expounded in detail the problems existing in this market.On this basis,this paper has analyzed the reasons for the emergence and development of grading business in this market,and has pointed out the effect of grading business is to reduce the information asymmetry by permanent fidelity,phase validation production and standardization production,transparency production.Then,this paper describes the current status of the grading business,and points out that the proportion of grading business in the Chinese paper money and coin collection market has become more and more important,and its importance has attracted worldwide attention.Thirdly,based on the relevant fact data,this paper takes King of Fluorescence for example,and empirically analyzes the role of grading service in the Chinese paper money and coin collection market.This paper gives a brief introduction to the related concepts of King of Fluorescence and the number distribution of different scores.Then in the value analysis,the general net income of King of Fluorescence can reach 58%;high scores can even get several times net income;the net income of special King of Fluorescence is also considerable.This example demonstrates that grading business has positive effects on the premium of paper money and coins.Then,based on this conclusion,this paper puts forward a series of reasonable suggestions on the planning and promotion of the grading service.On the one hand,it is necessary to establish and perfect the corresponding laws and regulations,establish industry associations and industry standards.On the other hand,we need integrity,rational competition,the courage to innovate,and need to take the personalized route,and vigorously promote the relevant knowledge of grading.At the end of the article,we present the main conclusions and research prospects.