The Research On The Relationship Between Closed-end Funds' Stock-hold Concentration Ratio And Stocks' Current Prices

In recent years, a large amounts of institutional investors come up in Chinese security market China due to the principle of " to develop the institutional investors in abnormal extends". So the competitions between the institution and individual has been gradually changed as the competitions among institutions themselves. During this change, as one of the largest institutional' investors in market, the investment principle and the operating methods which supported by funds has influenced security market in larger scale now. The thesis adopts the enlightenment to analysis the closed-end funds in China. The study also includes the alterations of stock concentration ratio, the averaged weighted unit price per stock current price in market and the stock index. The relationship of above mentioned three parameter are also studied. Through the analysis, the thesis aims to obtain the operation strategy of China's closed-end funds in different phase, and also try to provide the suggestions to the investors.At first, the thesis introduces three main indexes which reflect funds' stock-possessed concentration ratio, i.e.: concentration ratio of first ten stocks, the concentration ratio of first five sectors and the number of stock holders. Then, the thesis analysis the competitions of institution in Chinese security market and the difficulties encountered by closed-end funds in Market. The relative studies draw a conclusion that the overall exchange rate has the obvious declined tendency in recent years. This also give a proof from the other side that the Chinese security market is coming into institution times. Furthermore, the similar investment concepts and operation styles, the limited listing companies in excellent performance, the cross stock possessed among the fund companies are main issues to be solved by closed-end funds. Through the examples, the thesis studied on the modification of concentration ratio of first ten stocks, the first five sectors and the number of stock holders of closed-end funds, the thesis also pay attention to the relationship between the current market price of average weighted unit price and stock index. The results show the concentration ratio of closed-end funds altered from concentrated to dispersed and then be concentrated again from 1998 to 2003. From this results and the experience of developed oversea markets, we draw a conclusion that fund investments shall be relative concentrated under the current market structure. For the medium and small investors, they shall learn from the institutional investors' concept, and build up the new thoughts in market. On one hand, under the direction of value investment, me medium and small investors shall adjust the stock possession structure actively, to pay more attentions on well-performed stocks and developing stocks. On the other hand, theinvestors shall deduct the number of stocks held and possess a large amounts of excellent stocks in the near future. Only in this way, the medium and small investor will have the opportunities to share the fruits of rapid GDP developments. At last, I believe that the operating strategy of funds shall upgrade its studying abilities and find the value investment opportunities while the competition are mainly among the institutional investors in Chinese security market. From the long-terms view, the funds shall have an unique characters to ensure the good profits.