A Research On Closed-end Funds Transform Into Open-end Funds Of China

The closed-end funds gradually face the mature question from November in 2006 in China. These funds will be delayed, cleared or transferred into open-end funds, which attracted all kinds of attention. On August 9, 2006, first close-ended fund named Xingye completed the closed-to-opened procedure as an opened fund before three months and a half prior to be expired in the perfect response of market, which effected the market enormously as a typical example for other funds. Afterwards, other 12 closed-end funds implemented closed-to-opened one after another.From the situation for closed-to-opened our country, We can see that 13 reformed funds all obtained the possessor congress high agree, and obtained the market high approval, which relates warmly with last year second half year stock market, the closed-end fund outstanding investment achievement. But whether closed-to-opened is the best choice which the closed-end fund expired? Whether closed-to-opened continuously all can obtain the market so high approval? The author consider that it waits for further analyzes, because the open style fund certainly is not the closed-end fund the most perfect substitute, the close-ended fund does not have the redeeming pressure in the seal time, which has the open style fund incomparable superiority. Take US as the example, after 1929, the closed-end fund moved towards the decline, but from the 1980s intermediate stages, the close-ended fund rehas won the market attention, which also explained the closed-end fund essential existence. Under this kind of background, which we compare the close-ended fund and the open style fund as two kinds of basic organization form as well as research the close-ended fund transfer to the open style fund, has extremely important theory significance and practical significance.Therefore, basing on the ready research results and the reforming plan which has realized in our country, we research the reason, strategy and risk of close-ended funds transferring to the open style funds. Thus we can produce the counter measure and the suggestion and produce a beneficial inspiration by the time to the next close-ended fund reforming plan. The author believe that, the negotiable securities supervising and managing department should consummate close-ended fund reforming system arrangement as soon as possible, moreover the open style fund have the condition to develop, the close-ended fund also has the existence mark et value, we realize the close-ended fund and the open style fund should develop coordinately, reforming also should prioritize LOF.