Prosperity in the art market promotes continued trust

In the first quarter of this year, the art trust market continued its previous hot trend, not only in terms of the number and scale of circulation, but also in the investment model of artworks. According to industry sources, the art trust market has grown significantly in the first three months of this year compared with the same period of last year. The future market space and prospects of the product are very attractive.

Art Deal "Crossing Britain with the United States"

According to a report released by the British Art Market Federation (BAMF), the turnover of Chinese art work accounts for 23% of the global market, only 34% behind the United States, and 22% higher than the United Kingdom. In the field of art collection, Chinese art trade has achieved "Crossing Britain with the United States."

Since art is just as much a symbol of wealth as a luxury car and a villa, the “rich second generation” and “second generation of art” people are currently attracted to the field of investment in art. These young groups tend to use digital media such as the Internet. Contact artwork information. New generations of wealth owners have emerged with more innovative modes of thinking. Their collection of works of art has a more new artistic value orientation. Therefore, in recent years, the e-commerce platform represented by “Bosso Art Mall” has been More and more collectors are favored.

Qiu Ciguo, a researcher at the Yiyi Trust Studio, said that Chinese calligraphy and painting stands on the capital market with a strong momentum and is inseparable from the success of China's industrial wealth into the art market. Moreover, art investment is diversifying from the singularization of the main body to art financial products, which greatly reduces the barriers to investment in artworks and attracts more civilians to pay attention to and participate in investing in artworks.

In 2007, China Minsheng Bank issued the "Research Report on the Development of Art Banking Businesses," stating: "More than 20% of the domestic high-income groups have a habit of collecting. They will invest more than 1% of their assets in art collections. Assuming that 50% of China's total personal savings amounting to 16 trillion yuan belong to the high-income class, it means that at least 800 billion yuan in funds each year can theoretically be invested in works of art." The rise of Chinese art collections and investments is evident.

The sober 2012 Hong Kong Sotheby's Spring Auction became a veritable "event." The 13 auctions of this auction had a total of 3,186 pieces of art photographed, 2780 pieces were sold, the transaction rate was 87.26%, and the turnover was HK$2.465 billion, which exceeded the estimate of HK$1.9 billion before the auction. Although the total number of auction shots was reduced by 553 times compared to the same period in 2011, the new auction record still caused the market to recover.

For the global art market, some experts believe that today's market is showing further financialization due to the large inflow of investment funds, and the correlation between the art market and the financial investment market is constantly increasing. Since 2000, art financialization can be seen from many new methods of investment in art and finance. In addition to the active arts, there are art banks, art trusts, art financial products and even art mortgages. phenomenon.

In the past two years, unlike the cooling down of the stock market and the property market, the domestic art investment market has been extremely hot and has continued to heat up. From the spring shoot-out in 2012, people have already felt the fiery market of investment related to artworks such as jade, gold collections and stamps. In addition, 2012 is China's favorite "Dragon Year," and many of the artwork related to the Year of the Dragon are favored by investors, including dragon tickets, gold dragons, and the concept of dragons. These are all investment projects for art. Play "heating" effect.

Market preference for short-term artwork investment According to incomplete statistics, the trust companies in the country issued a total of 13 art trust products in the first quarter of 2012, an increase of 7 over the same period last year, an increase of 116.67%; Compared with the quarter, there is a decrease of one.

In the first quarter of this year, the scale of distribution of art trusts was 181.74 million yuan, while in the first quarter of last year, the scale of issuance was 1.27 billion yuan, a year-on-year increase of 42.81%. Compared with the issuance scale of 139.200 million yuan in the fourth quarter of last year, it increased by 30.3%. In the first quarter of this year, 12 products were established, an increase of 500% over the same period of last year. Compared with the 14 products established in the previous quarter, they decreased by 14.29%. From the scale of establishment, the first quarter of this year was 928.34 million yuan, an increase of 238.91% compared with 273.92 million yuan in the first quarter of last year, and an increase of 15.75% compared with 820 million yuan in the fourth quarter of last year.

Qiu Ciguo said that on the whole, art trust issuance in the first quarter of this year has increased significantly compared with the same period of last year, and has slowed down compared with the previous quarter. Art trusts have maintained a certain rate of development while the development of the entire trust industry has slowed down. This kind of steady development trend will lead to specialization in the future. A group of trust companies have emerged specialized in alternative investments.

From the point of view of revenue types, 11 art trust products issued in the first quarter of this year have 11 types of fixed income, which occupies an absolute advantage; the other 2 are stratified revenue types, and last year have appeared floating and basic + floating types. Revenue products are missing.

Judging from the type of term, the first quarter of this year is still dominated by a single type. Only the Trust Fund for the United States No. 10 Art Fund Settlement issued by Zhongrong Trust adopts an open-ended period and sets an opening period for investors to purchase redemption trusts. Shares increase the liquidity of products and can better fit the investment cycle of artworks. “It can be seen that domestic investment in art works is still dominated by short-term investment, while foreign art investment products generally have a longer duration, and they pay more attention to the value of art collections. This is also a trend for the development of art trusts in the future, and of course domestic investment remains. The investment concept is mature."

Qiu Ciguo stated that among the products counted in the statistics, the main hit in the first quarter of this year was investment-type art trusts, and equity investment, portfolio use, and **-type product design did not appear. Therefore, art trusts issued in the first quarter were basically investment-type products, and ** products were missing. The investment products are art trusts in the true sense. It can be foreseen that the use of funds for art trusts will continue to be dominated by investment.

Judging from the investment targets, the investment targets for art trusts in the first quarter of this year are still mainly paintings and paintings, including modern and ancient and domestic and foreign paintings and paintings. CITIC Wenduan and Fan Yunya's investment in the No. 2 investment ** collective fund trust plan issued by CITIC Trust are based on rhinoceros, **, and sculpture. Qiu Ciguo believes that the singleness of investment targets is due to the fact that product issuance is concentrated in a trust company, so the style of investment is similar. On the other hand, because most trust companies are first involved in the field of investment in art, they are more cautious and have chosen tradition. The paintings and paintings are investment targets. “But the excessive concentration of investment targets is not conducive to diversifying risks, so we expect that the future of the artwork trust investment can be diversified.”

Judging from the issuance scale, the average monthly issuance scale in the first quarter of this year was RMB 604.58 million, an increase of RMB 14.058 million from the RMB 464 million in the fourth quarter of last year, and an increase of RMB 181.25 million from the RMB 423.33 million in the first quarter of last year. Yuan, with an increase of 42.82%. "Obviously, in the first quarter of this year, the monthly issuance of art trusts has seen a substantial increase in both quantity and scale over the same period of last year." Qiu Ciguo said that this shows that in the context of the continued decline in the industry-wide prosperity index, the art trust The market still maintains a good momentum of development.

The Art Trust has attractive development potential. Although the art trust development in the first quarter of this year has a good momentum, the bottleneck that restricts its development still exists. Qiu Ciguo stated that at present, in the absence of an authoritative organization for authenticating works of art and a valuation system that is not yet sound, insurance companies cannot provide insurance services for works of art, and the banking industry cannot provide mortgage services for artworks. This really restricts The development of art trusts. “But from an international point of view, art investment is already an important wealth management service provided by wealth management departments and private banking departments of large Western financial institutions for high-end customers, and it is also a relatively mature alternative investment type for institutional investors. The thousands of years of civilization and history of the Chinese nation and artists of all generations have left the world with an enormous treasure-house of art. We believe that the future market space and prospects of the Art Trust are very tempting."

Qiu Ciguo stated that there are four main reasons for promising the development potential of art trusts: first, the rapid growth of China’s economy and the increase in national wealth have laid a material foundation for the financialization of artworks. The strong demand for the art market is being formed and enlarged. This has created a golden opportunity for the development of the Chinese art market. According to the experience of western countries, when the national income reaches 6000-8000 US dollars, the climax of art collection and investment will come. The macroeconomic environment in which the Chinese economy continues to grow steadily will generate more collectors and create strong purchasing power. With the current real estate market facing strict controls and the stock market being relatively weak, the space for growth of the art market will increase with the wealth of the nation. The improvement of the quality of life is even greater.

Second, the involvement of financial type capital has led to a boom in the art market. The financial background of collectors can rely on financial means such as ** to obtain sufficient funds quickly from the capital market, and can use the systematic, academic and pertinence of specialized collection agencies to support the future development of the Chinese art market to the scale of capital. Change in form, variety, and flexibility. In 2012, there will be more financial type capital entering the art market, which will promote the prosperity of the art market.

Third, it benefits from the popularity of Chinese collections and the leap forward of the global contemporary art market, as well as changes in the Chinese government’s policy on art trade. At present, China has become the second largest art market in the world. The growing maturity of the Chinese art market and the increasingly active auction market have made the flow of art more transparent and flexible, and there are many potential for investing in works of art.

Fourth, the continuous improvement of the legal environment for art market transactions also creates conditions for art trusts. For instance, the "Administrative Measures on the Auction of Cultural Relics Auctions," "Interim Measures on the Administration of Cultural Relics Auctions," "The Auction Law of the People's Republic of China", "The Law of the People's Republic of China on the Protection of Cultural Relics" and "Implementation Regulations" and other laws and regulations have been promulgated one after another for the development of art trusts Laid a certain foundation.

Qiu Ciguo believes that in order to continuously standardize and improve the art market trading and operation methods, the competent authorities and relevant industry associations are investigating how to improve professional ethics and reputation mechanisms, coordinating the industrial rules for the development of the primary and secondary markets, and establishing modern artworks. Broker system and scientific appraisal system. “With the gradual improvement of ancillary services such as art appraisal, valuation, and insurance, and the further integration between collectors, galleries and auction houses, the prospects for the future development of the art market are worth looking forward to.”