The Empirical Analysis On Performance Evaluation Of Chinese Open-end Funds

After Hua An fund management Company Limited establishment the first open-end funds—Hua An Chuang Xin in September 2001, the open-end funds began its history in China. Up to Nov.28th, 2005, the number of the open-end funds in China has reached 161 within the short time span of less than five years. The open-end funds have play a leading role in Chinese funds industry.With the rapid development of open-end funds in our country, the open-end funds is playing a more and more important role on finance market. Scientifically and rationally measuring their performances is important and meaningful for the investors, fund management companies and department of the market's supervision. Grounding on the ways adopted in western countries, we try to Empirical Analysis the performance of Chinese open-end funds in Chinese circumstance, By doing so, certain value could be contributed to the investors, fund management companies and department of the market's supervision and the development of funds industry.The main research route of this paper is adopt the yield indexes, single-factor risk-adjusted returns indexes, T-M model and H-M model, two-way contingency tables model etc., With these method, we evaluate open-end funds whole performance by month yield, risk level, the yield after risk-adjusted, selectivity and market timing ability of managers and persistence in portfolio performance five aspect. By empirical analysis, conclusions can be drawn as follows:⑴Relying on initiative investment, open-end funds performance excels market benchmark, but this also prove that the securities business have not high efficiency in our country.⑵On the whole, the open-end funds can disperse risk, but non-system risk take a main proportion in total risk.⑶The performance ranks represent high relativity despite of leave out of account risk factor and risk-adjusted returns indexes.⑷During the estimate time, open-end funds managers have some selective abilities but lack of market timing ability. Open-end funds managers'selective abilities and market timing ability represent high minus relativity.⑸During the estimate time, open-end funds represent certain performance persistence whether in short-term or in long-term.Lastly, the writer put forward some suggestions on further development of open-end funds in China, founding on the empirical research results and the detailed analysis of its cause.