Study On Liquidity Risk Management Of Open-ended Funds

On September, 2001, the Hua'an Innovation Open-ended Funds, our first contracted securities funds, had succeeded offering. During the later three years, open-ended funds have become the largest institutional investors in securities market of China. At the same time, our securities market has system defect and the whole quality of the listed companies is poor. Liquidity risk management has become the most important task of funds manages. The author hoped to have some contribution to liquidity risk management of open-ended funds.The author studied the liquidity risk of open-ended funds, including used the research achievement all kinds, analyzed the liquidity risk of open-ended funds by quantitative and qualitative analysis, and put forward the method of the liquidity risk management of open-ended funds.From the view of funds manages, the author firstly explained the meaning of liquidity risk and its formation mechanism, pointing out the reason between liquid and return is the source of liquidity risk. Then, analyzed how to form and understand the liquidity risk management system which are corresponding to reality of open-ended funds development through studying the supply and demand of redemption of open-ended funds. Finally, the author put forward the whole model of the liquidity risk management of open-ended funds on the front chapters basis.