The Studies On The Operation And Future Of ETFs In China

ETFs (Exchange Traded Funds) is a kind of fund, which can be traded in stock exchange. The first ETFs appeared in 1989. ETFs has gone into capital market since SPDR appeared in 1993. ETFs has developed rapidly in last ten years. ETFs is managed by passive methods, which tracks one kind of market index and hopes to gain the same profit as it. ETFs can not only be traded in exchange like closed-ended funds, but also be purchased and redeemed like open-ended funds. We can find the operation of ETFs in foreign countries is very good and many investors have welcomed ETFs.The security market has developed rapidly since it appeared in 1990 in our country. Many kinds of stocks, bonds and funds are traded in the security market. The efficiency has been improved much in the capital market in our country. At the same time, the funds industry has developed rapidly. All these suggest that it is time for ETFs to appear. On theseconditions, the first ETFs----50ETF appeared in our country in 2004 andit can be traded in Shanghai Security Market. But there is not a decisive conclusion about its operation.The thesis analyzes the operation of 50ETF by using correlative data. The author calculates the tracking errors of 50ETF. The thesis analyzes the correlativity of 50ETF and 50 Index with SPSS using positive methods. Comparing with the operation of ETFs in foreign countries, the paper comes to the conclusion: The operation of 50ETF is successful, which has tracked 50 Index in Shanghai Security Market very well. Finally, the paper analyzes the futures of ETFs in our country and puts forward some suggestions.