Systemic Risk Control Analysis For Open-End Fund Portfolio

This article attempts to utilize the Macroeconomics, negotiable securities investment and Futures marketing to discuss the problems and the reasons at control and bring forward the strategies to improve systemic risk control through stock index futures.Based on the study of China's macro-economic development, this paper discusses China's securities market situation and the systemic risks at open-end funds through securities investment analysis. It focuses on the analysis of the negative impact to China's securities market through analyzing China's macro-control and the sub prime crisis in the United States. The analysis of open-end fund related systemic risk control activities such as position control, stock options and high-ratio dividends, etc. is conducted through the analysis of the optimization of the core fund in China Post(590001).The author pointed out that the relative lack of high-quality listed companies and non-rational redeem of fund holders, in particular, the imperfections of the current stock market system is the fundamental reason for the above mentioned issues. This will play a guiding role in the establishment of investment strategy for the open-end fund.Aimed at improving the open-end fund related systemic risk control,it recommends the following options: increasing the number of high-quality listed companies to improve the supply and demand relations, launching the stock index futures hedging tools in the earliest time, strengthening the management of listed companies and establishing the buffer fund.Finally, it provides the static and dynamic hedge solutions regarding to the top ten funds of the optimization of the core fund in China Post(590001). It describes the hedge solutions' processes and effects in a detailed way. The conclusion, namely, open-end fund can keep gains and avoid systemic risk of stock market by hedging, is reached via the quantitative analysis. It will help to adjust the investment structure of open-end funds, get stable and sustainable profits and stabilize China's securities market.