WU Mengyu1
(East China University of Political Science and Law, Shanghai 201620, China)
Abstract: Ancient porcelains, most of which come from worldwide action market, are a significant category of art investment. As the number of anticipators goes up, some investors may want to make a fortune from the “bandwagon effect”. However, trend changes easily and cashability of ancient porcelains fluctuates. How to select a hedging porcelain assortment to avoid its liquidity risk? According to nearly 10 years of auction data of China Guardian Auctions and Sotheby’s, we can analyze the trend of porcelain investment. Through the calculation of the correlation coefficient using Eviews, conclusions could be drawn to apply for a risk-avoiding investment portfolio. The final part demonstrates the feasibility and profitability of the portfolio from the aspects of artistic value, historical value and marketable value.
Key words: auction; ancient porcelain investment; hedging tactics