Studies On The Liquidity Value Of Chinese Equity Open-end Fund

The liquidity of equity open-end fund in this article mainly refers to bank deposits,settlement provisions, and refundable deposits held by the equity open-endfunds,Somewhat similar to the Company held cash and its equivalents.Open-end fundliquidity in addition to has the book value, it also contains a potential value.Assess thepotential value of this great significance for the open-end fund liquidity management.Open-end fund is required by the system to hold not less than5%of the net asset valueof the cash or government bonds in response to investor redemptions.But,equity open-end fund is mostly held about13%of cash and its equivalents,in otherwords,most of the fund is holding excess liquidity,Liquidity generally earns lower thanstocks or bonds,then, why open-end fund to hold excess liquidity?Excess liquidity is notonly carrying the book value,but also the implied option value.Holding excess liquidity given the open-end funds the option to seize the investmentopportunities in timely and improve the profitability when the investment opportunityarrives.If the equity open-end fund does not have excess liquidity, when the investmentopportunities arriving, the fund is difficult to seize the investment opportunities in time,even may miss the investment opportunities.Excess liquidity given the open-end fund thisoption is valuable, this is an option value.Since excess liquidity held by the open-end fund is used to seize the investmentopportunities, then, what is the Fund's investment opportunities.With Warren Buffett andGraham views on investment opportunities, investment opportunities is to make the fundholds the cost income over transaction costs and liquidity of investment opportunities,bythe collection of these investment opportunities is an investment opportunity set,combinedwith the method of assessment of the value of the investment opportunities,we assessedthe value of the investment opportunity set of open-end fund liquidity.Open-end fundsheld by the excess liquidity is to swap between liquidity and investment opportunities setto increase the income of the fund.This is similar to a new option-exchange option.Learn from the exchange option pricing theory to assess the value of the excess liquidity ofopen-end fund,this value with the market's different, different, good market high-value,low value when the price difference.The purpose of the mobility value is to provide some suggestions or managementtools for fund managers,open-end fund's liquidity management is very important,open-end fund is not only to deal with liquidity management issues faced by the generalcorporate,have to deal with a class of special problems-the investors' subscription andredemption of the impact on liquidity,this makes the open-end fund to be more difficult todetermine the appropriate liquidity holdings.Volume and Price has a relationship of mutualinfluence,if you know the value of mobility,determine the amount of liquidity will becomeeasier.It is based on the above considerations, this paper analyzes the value of open-endfund liquidity characteristics and liquidity,On this basis,we estimate the mobility of thevalue of influencing factors.