The Research On Stock-holding Preferences Of Investment Funds In China

The standard investment funds of China established in 1998, in the passed ten years, Chinese investment funds gained great progress and promoted Chinese stock market to develop. By the end of December 31 in 2006, there are 321 investment funds in China, the numbers of open-ended funds are 268, and the numbers of close-ended funds are 53, the net asset value of investment funds is 856.4 billon Yuan.Currently, the development of Chinese investment funds still at a start stage, the operations of the funds are not mature, mainly displayed in the investment operations are not standard, the anti-risk ability is weak, etc. Therefore, it is necessary to conduct the research on stock-holding preferences of investment funds in China: On the one hand, we can judge the rationality and the accuracy to stock-holding preferences of investment funds through the inspection of the funds' achievement, find out the stock-holding of funds whether conform to the market rules, so we can provide rational proposals to enhance the investment incomes for funds; On the other hand, we may discover the regularities and the general characters of the stock-holding of funds, thus understand the funds' investment behavior profoundly, superintendent can formulate policies and regulations conform to the fund industry own characteristic, finally, promote the fund industry develop healthily. They are the two purposes for writing this paper.This paper uses the fundamental and the empirical research methods. Content arrangements: The first chapter introduces the development conditions of Chinese investment funds and the significances of the research on stock-holding preferences of investment funds in China, as well as domestic and foreign scholars' research results about this topic, and introduces the innovations of this paper. The second chapter conducts the fundamental research on stock-holding preferences of investment funds, conducts the research on stock-holding preferences of investment funds that based on principal-agent relationship, and analysis the stock-holding theory preferences of funds that based on the funds' essence characteristics, obtains the results that funds prefer to hold high earnings per share stocks, etc. The third chapter introduces the research object, the sample and the model of this paper. The fourth chapter conducts the empirical research on stock-holding preferences of investment funds, conducts the research on dynamic change of explained variable and explanation variables in the dynamic empirical research part, and compares with the same time market average level, obtains the results that funds prefer to hold high price stocks, etc; establishes linear return model in the static empirical research part to carries on the return to the funds stock investment ratios and the stock characteristic variables, conducts the research on stock-holding preferences of investment funds from the static view, obtains the results that funds prefer to hold high turnover rate and old list age stocks, etc. The fifth chapter summarizes the results of the paper, and gives some proposals.The paper obtains the results that Chinese investment funds prefer to hold high price, high earnings, high growth value, old list age stocks; in order to keep the risk low, investment funds don't prefer to hold low fluidity stocks; the circulation ratio of stock has less affection on the stock-holding preferences of funds, etc.