Researching On Chinese Open-end Funds Performance Evaluation

With the rapid development of Capital Market in our country, open-end fund is playing amore and more important role on securities business. Scientifically and rationally measuringtheir performances can provide fund manager, investor and supervisor with abundantinformation that can be used for making decision.This paper will analyze Chinese open-end funds performance in the following ways.Firstly, it introduces the development overview of the foreign open-end fund industry andcurrent situation of open-end fund development in our country, and briefly defines open-endfund and introduce its special features. Secondly, introduce methods of open-end fundperformance Evaluation. Based on these fundamental works, this paper will go on to thedescriptive statistics study part. This paper makes the full description of Chinese open-endfunds industry. Then this paper will go on empirical analysis of Chinese open-end fundsperformance, including basic performance of Chinese open-end funds and the skill of markettiming and stock selection and the performance persistence of open-end fund.After these researches we can draw the following conclusions. Chinese open-end fundshave the preference on big-cap stocks. Chinese open-end funds show highly concentration onstocks and industries. Chinese open-end funds as a whole can not exceed the benchmarkwhen based on risk-adjusted measures. Chinese open-end funds as a whole do not haveexcellent skills for stock selection and market timing. Short-term performance of Chineseopen-end funds does not have persistence. In the end, it carries on the discussion on thedependability of Chinese open-end funds performance and makes some suggestions onapplication.