In recent years, with the continuous accumulation of wealth in China and worldwide, art has become an essential component of asset allocation for more and more high-net-worth individuals, families and businesses.

Recently, the launch ceremony of “China Art Wealth White Paper 2019” (hereinafter referred to as the “White Paper”) was held at the Central Academy of Fine Arts, which marked China's first art wealth management industry report jointly compiled and released by a wealth manager and specialized art market teaching and research institutions.

Led by CICC Wealth Management and the School of Art Management and Education of the Central Academy of Fine Arts, the White Paper is supported by the International Art Market Studies Association in China (TIAMSA in China) and AMRC Art Market Research Center. Mr. Dong Rui, Director of AMRC Art Market Research Center, Founder of Art Market Journal and emlyon Global DBA participant, attended the launching ceremony and provided a systematic presentation of the research findings.

▲ Mr. Dong Rui, Director of AMRC Art Market Research Center, Founder of Art Market Journal and emlyon Global DBA participant

The rapid growth of the Chinese art market and the increased attention of high-net-worth individuals to artworks has enhanced the correlation between art and finance and that between art and capital. As an alternative asset, art has become a critical component of wealth management.

Although China's art wealth management started late, the cross-disciplinary exploration in the sector is active, highlighting visible late-mover advantages. We have witnessed a number of innovations in terms of art ownership trading, financial products and art consumption investment, leading the worldwide art community in both theories and practices.

However, most of the current research and reports on the art wealth management sector are dominated by western financial institutions. Although there are certain descriptions of art wealth management in China, the limited perspectives and coverage prevent them from fully and systematically represent the whole picture and characteristics of Chinese art wealth management business.

In this context, China's first art wealth management industry report, which was jointly compiled and published by a wealth manager and specialized art market teaching and research institutions, came into being. "China Art Wealth White Paper 2019" was prepared by AMRC Art Market Research Center, with the supports of CICC Wealth Management, the School of Art Management and Education of the Central Academy of Fine Arts and the International Art Market Studies Association in China (TIAMSA in China).

Built on academic research, the White Paper combines quantitative and qualitative methodologies to analyze data from the art wealth management industry at home and abroad, review the current status and characteristics of this sector and study new ideas and extensions of art wealth. Moreover, through multifaceted case studies and expert comments on different stakeholders in the value chain of art wealth, it is committed to reveal the underlying rules of evolution and facilitate comprehensive industry research and decision-making.

China Art Wealth White Paper 2019" focuses on the following seven topics:

• The appeal of art wealth under the new economic normal;
• The favorable art market environment for the development of the art wealth management sector;
• The increased demand for art wealth;
• The visible advantages of investing in artworks compared with other alternative investments;
• The gradual construction of the art wealth management system;
• Six models of art wealth management; and
• Future prospects of art wealth management.

At the ceremony, Mr. Dong stated, "With the growth of GDP per capita and the implementation of CRS, the role of art as an alternative asset in wealth management has become increasingly visible." In May 2019, AMRC Art Market Research Center worked with CICC Wealth Management and conducted an art wealth survey among high-net-worth individuals and art market professionals in China, with a total of 2,280 valid questionnaires collected. The findings show that high-net-worth individuals have high confidence in the art market, art has become one of the preferred alternative investments for high-net-worth individuals, and art wealth management and consulting services and family trusts represent enormous potentials in the next three years.

Given the aesthetic education for all, the transformation of FinTech-enabled wealth management, the intensive introduction of preferred national policies, the socialization of the art wealth management sector and the continuous “Finance+” market innovations, China's art wealth management sector is poised for action.

The research of the art market focuses on the study of the players, offerings, performance, evolution and regulation of the art market. Among the offerings, artworks, in particular oil paintings, are an essential component in the trading of the global art market. Furthermore, the formation and determination of pricing are also critical research topics.

Mr. Dong Rui, a participant of emlyon Global DBA 2017, explored the pricing topic based on years of market knowledge and expertise. Centered on the pricing mechanism of paintings, his DBA thesis is expected to make vital contributions to the future of the art market.

Source：Art Market Journal