LAUSR

Abstract A new artwork trading model emerged in China at the beginning of 2010s: the value of a piece of artwork was divided into equal shares, and investors could buy and sell these shares in the cultural artwork exchanges, in exactly the same way as investors trading stocks in the stock market. In China, this trading model, once available, was hotly pursued by investors. This rapid market growth quickly descended into trading market confusion and speculation, forcing the government to deal with this model and eventually putting a stop to it. In this paper, we take a closer look at the reasons for the artwork shares’ price booming and slumping, the disorder and speculation in the artwork share trading market, and the reasons why the Chinese government halted this kind of trade. Taking the Tianjin Cultural Artwork Exchange of China as an example, we found that artwork can be an alternative investment vehicle, but the share trading model, similar in function to the stocks and bonds market, is not fit for artwork. The lack of legal basis and supervision by governmental bodies, together with the changeable trading rules has also contributed to the failure of this artwork trading model in China.