A Research On The Redemption Of Chinese Equity Open-End Mutual Fund

In our county, since September, 2001, the fist equity open-end has established, passes through several year fast development, until Dec 31,2007, there has 141 equity open-end funds, especially in 2007, there are 44 new equity open-ends had been established. On the one hand, the equity open-end fund's overall scale is unceasing expansion; on the other hand there are more and more personal investors in the equity open-end fund with the stock market booming, which may give more potential mass redemption risk. It is significant to investigate the differences and the reasons for personal investors, fund companies, investors and securities regulatory department.By comparing the development and present situation of foreign country's equity open-end fund with our country, the paper tries to find the primary factors which affect the mass redemption.In the empirical analysis section, the paper through collecting all the equity fund date of 2004 to 2007, dividing stock market into bear market and bull market, analysis the influence of the return of fund, the volatility of stock market, dividend, the overall redemption of all the equity funds, and the proportion of the personal investors by the panel date method. In the whole observation, there is evidence to prove that the expectation of the security market by the personal investors can affect the redemption. And the high proportion of the personal investor is another reason for the mass redemption. So, we need the rational personal investors and a stability security market circumstance.In the last section, the paper gives some suggestion to strengthen the risk management of equity open-end fund.