Takung's online trading portfolio is growing rapidly and comprises calligraphies and paintings, jewelry and precious stones.
The listing process begins with an artist or owner, together with an authorized offering agent, presenting Takung with new artwork for listing on the platform. The artwork may be an individual piece or a portfolio of several pieces. If the company believes it can be a valuable addition to its trading platform, it will then work with the offering agent to:
- obtain third party valuations from notable art experts;
- assign an initial value for the artwork at listing;
- perform research and prepare the required marketing materials and promotional activities to attract investor interest;
- arrange to safely store the art; and
- purchase insurance to cover any loss from fire, water, etc.
Once an artwork is accepted for listing, it is divided into equal ownership units based on its appraised value. For example, a painting with an appraised value of $1,200,000 HKD may be divided into 1,200,000 units with each unit sold at HK$1.00.
Takung's platform provides investors with liquidity often absent in the broader Chinese and international art markets. In the first quarter of 2017, the trading of its listed artwork generated a total transaction value of US$4.74 billion versus US$812.79 million transacted in the comparable year-ago period. Registered investors can easily buy, sell and settle on payment of units of ownership, either in RMB or Hong Kong dollars.
As of March 31, 2017, Takung had 199 art listings trading on the platform, up significantly from their aggregate initial listing value of US$50.8 million - with trading volume averaging almost 100 million units per day in the first quarter of 2017. Each piece will remain intact and continue trading on the Takung commercial site for ten years, after which time it will be sold and the proceeds distributed to the unit holders.