The Evaluation Of Chinese Stock Mutual Fund Performance

Since the restoration of the stock market at the beginning of 1990s, it has had considerable development. Especially with the completion of share merger reform, the stock index of Shanghai rose about 130% in 2006. And now the index has already achieved 4,300 points and the total value of the two markets has broke through 18,000 billion. Along with the maturation of China Stock market, institutional investors especially mutual fund companies will become more and more important. The newest performance valuation of mutual funds will be a useful guide to their investment strategies. In another way, the valuation of mutual funds' performance has close relationship with modern financial theories, which it origins from and we could test the validity of these theories through the process of the valuation. So it simultaneously has theory significance and practical significance.Among all the mutual funds, stock funds no doubt receive the most attentions, because they got the highest yields since the bull market came in 2006. Based on the article length consideration, in order to keep focus, I choose stock mutual fund to take the object of study, inspecting mutual funds' selection abilities, timing abilities and achievement persistance. According to the results, the funds have ordinary selection abilities and universal good sense of timing abilities. Referred to achievement endurance, the difference is quite serious.Based on the newest data, the paper inherited traditional methods, adjusted to the actual situation of Chinese stock market and concluded the latest results, some of which consist with predecessors' research.