I am tiring of the Chinese stories, yet they seem to dominate the press. To bring, perhaps a little reality back to the market place, a Chinese art stock exchange has recently pulled two paintings from the marketplace due to ever increasing investment and rising market capitalization. This growth includes a market capitalization for a painting of $15.7 million, a mere 52 times higher than the artist has ever sold for at auction. The Tianjin Cultural Artwork Exchange has decided to remove two paintings from the exchange in order to protect investors, and I assume the viability of the exchange. Other artworks art being offered, including diamonds.
Reuters reports
To read the complete Reuters article, click HERE.The Chinese art market was also seen by many critics as a bubble in 2008 when auction prices soared. But the boom in art shares was something entirely new.
The Tianjin art exchange, which opened in January, operates by listing works of art and then offering investors fractional ownership.
The two paintings yanked from trade were Roaring Yellow River and the Autumn in Fortress.
Exchange data showed that on its last day of trade this week, shares in Roaring Yellow River traded at 17.2 yuan ($2.62), compared with their issue price of 1 yuan.
That valued the canvas by modern Chinese painter Bai Gengyan at 103 million yuan ($15.7 million), nearly 52 times the highest price that Bai's paintings had ever fetched in a public auction.
But it is not the end of the road for the Tianjin art exchange, which says on its website that its goals are to promote "financial innovation" and "broaden channels for the public to participate in high-end artwork investment."
It listed seven new paintings and a diamond on March 11. They have gone up by 15 percent -- the maximum daily gain according to exchange rules -- in every trading day since then.
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