Research On Non-independence Of Family Funds In China

Now the rapid development of institutional investors represented by securities investment funds is one of the main features of China's capital market and industry. As of December 31,2009, there are 625 funds in the securities investment fund industry and its total assets under management have reached 2.67608 trillion(?), share 2.453507 trillion copies. As of December 31,2009, the net assets value of JiaShi Shanghai and Shenzhen 300 Index (LOF) Fund——the largest fund reached 39.393 billion (?).With the rapid development of industry, the trends that fund management companies compete as fund family (which can be simply understood as having two or more funds) in the market is increasingly evident. As of December 31,2009, there are totally 60 fund management companies in the whole industry, having all been the fund family form.HuaXia as largest fund management company measured by net asset value manage 27 funds, market share of 9,74%.In fact, in the foreign developed markets, fund family as the market competition object has become one of the main empirical facts. Academics on the fund between the Company and its affiliated funds, the complex relationship between funds belong to the same management companies have been made in certain depth However, China's existing research in this field have not yet carried out, with limited success. This article attempts to improve the situation by make their own contribution, the specific object of study is whether the same fund family's funds are mutually independent, whether single fund is to ignore the existence of other funds within a fund management company, in accordance with their own interests to maximize rather than to consider the interests of other funds and the family, namely the research on non-independence between funds.The content and main conclusions are as follows:1. The first chapter is a introduction to the research background of this article, meaning, methods and innovation.2. In the chapterⅡ, in order to achieve an accurate understanding of the phenomenon of the fund family, on the differences between the family fund we divide the process of establishment of new fund by management companies into two steps: first, assume that the fund management companies set up funds with same characteristics as old funds, holding that due to a negative correlation between size and the income of the Fund as the constraint, it is optimal for fund family to behave in this way. Then from the point of view of investor heterogeneity as well as product differentiation we show that the fund family will set up different styles of funds.3. In ChapterⅢ, we reaserch the non-independence of family funds and the difference in the family funds, say that the difference in the family funds is the foundation and environment for the non-independence of family funds, that the essence of difference in the family funds is the external manifestation of fund family. We analyzes the external forms of fund family, ranging from static and dynamic point of view as well as the fund type, fund innovation,fund style to analyze the fund, mainly summarizes the major innovation in the U.S. fund industry and China's fund industry based on the advanced foreign Experience on innovation. From three terms: market, fund family, fund alone we summarizes factors that may affect the fund style drift, and use the empirical data in China, reached the empirical conclusions。4. In ChapterⅣwe analyze the common holdings phenomenon in the same fund family, found that it is rational in economics in a certain degree, because of the diversification investments characteristics of fund it is necessary to maintain a certain degree of dispersion of ownership, but the narrow choice of fund holdings caused by Stock Market capacity spawned the the common holdings phenomenon. We propose a new measure of common holdings---- concentration correcting the draw of existing indicators, having characteristics as comprehensive, rationality. Then analyze the factors that could affect the common holdings and conduct empirical research.5. In the Chapter V we analyze the competition within the fund family, unify two kinds of theoretical model with opposite behavior into an overall framework, pointing out that the mid-term rate of return determines the relative difference in the degree of risk between losers and winners. Using empirical data of China we confirm its existence not only in the market, also in the fund family.6. In the Chapter VI we analyze spillover effects in the fund family.Firstly we build model with investor heterogeneity, incomplete information, then analyze the central role of spillover effects on the fund family. Using Chinese fund industry data, we conduct empirical research on performance spillover effects in representatives of "Star Fund". We confirmed that the existence of star funds can significantly increase their own, as well as non-star fund inflows.7. ChapterⅦis conclusions and outlook.