The Study Of China's Closed-end Funds Discount And The Countermeasures

China's closed-end funds begin in 1998, and have shown the four characteristics of the typical closed-end fund discounts: 1, when the closed-end funds are first listed, they are traded at premium pricies; 2, after a while , they would be traded at a discount; 3, the discount rate substantially changes, and is inconsistent with the net value changes; 4, the discount would be smaller even disappear at the expiration . Compared to overseas financial markets, China's closed-end funds discount is greater.The deep discount makes our country's closed-end funds marginalized. From September 2002 to August 2007, for a period of five years,there is no issue of a new closed-end funds. In the same period, open-end fund have a substantial growth. At first, based on domestic status, this paper gives a detailed description of China's closed-end fund discounts demonstrated by the four characteristics; Second, according to China's closed-end fund discount characteristics, combining behavioral finance theory and Empirical testing, I found that China's closed-end funds discounts have a high degree of relevance, and the listing of new funds are also negatively correlated with the discount significantly. This shows that China's closed-end funds have the common investor sentiment, and Closed-end fund its own system defects is the underlying causes of the changes. Finally, a closed-end funds transformation plan: transformed to LOFs or half-closed-end funds, in order to solve the closed-end fund discounts And for the system shortcomings of closed-end funds , the article gives the corresponding recommendations in order to help the development of the market.