An Empirical Analysis Of The China Fund Holding Regional Difference

There often appears that some areas stock trading is very active and continuous rising in the Stock Market, which attracts international scholars to analyze theoretically and research empirically. It is innovative to study this phenomenon in Chinese Stock Market.In the paper, on the basis of Cooper and Kaplanis'(1986) analysis, we construct optimization model of the fund stock investment area allocation, and from the aspects of the Macro economy (GDP growth, per capital GDP, net export, FDI, trade between provinces), Stock Market Variables (capitalization, turnover, geographic distance), Historical Yield (ex-fifth year yield, ex-first year yield, correlation) and so on, we study how these factors affect Investment fund stock asset allocation. Then, using 1998-2009 Investment fund annual panel data, we empirically research investment area allocation problems; the results show that Investment fund decision on area allocation significantly depends on local economic development, capitalization, historical yield:capitalization (SIZEit), trade between provinces (RTRADEit), turnover(TURNOVERit), FDI (RFDIit), ex-fifth year yield (R5), distance (DISTANCEij) have negatively impact on the investment decision on local stocks; while per capital GDP (RPGDPit), GDP growth (RGDPit), net export(RNEXPit), ex-first year yield(R1) have positive impact.