An Empirical Study On The Discount Of Closed-end Funds In Our Country

The discount of closed-end funds means its price of market trade is lower than the net value of assets.It is a very difficult problem in the financial field.Up to now,no credible theories,which can give enough explanation,are found.Comparing with the closed-end funds in other country's security markets,the phenomenon is more obvious in our country and has already been a focus that attracts many scholars' attention.This article studied the discount of closed-end funds in ourcountry,.which considered the practical situation of our country's security market.This paper was composed by five chapters.The first chapter was the introduction to the article.It mainly explained the theoretical and practical background of the discount issue on closed-end funds,the significance of this study,research content and methods,and the main innovation.Chapter Two was the theoretical basis of this study.This study was based on the three theories——performance expectations theory,the theory of market segmentation and investor sentiment theory,and started from them.In this chapter,not only these three theories were described,also pointed out the limitations of these theories on the discount issue of closed-end funds.Chapter Three analyzed the status quo of the discount on China's closed-end funds. Firstly the past development situation and the characteristics of closed-end funds in our country were expounded.The fundamental situation of the discount on China's closed-end funds was also analyzed.And the statistics distribution characteristic,time series characteristic of the discount,interrelation characteristic between the discount index of the funds and market index,and interrelation characteristic between the remainders of discount rates of different funds were fully analyzed.Through the analysis,we explored the reason of the discount on China's closed-end funds.Chapter Four did the empirical analysis on the discount of China's closed-end funds. It was the core of the full article.This chapter studied the discount of closed-end funds in our country using the practical data from the angle of time,risk and profit and investor structure.The conclusion is that,the time factor of closed-end funds influences the discount very much.The discount has some relationship with the risk funds have and disperse and the profit of funds.The owning proportions of institutional investors and insurance companies to closed-end funds have notable negative relationship with the discount.In the way of regression analysis doing stepwise,the main influence factors to the discount of closed-end funds in our country are decided.Those are remained time,the time dealt on the market of closed-end funds and mean of net assets value.Among these factors,the mean of net assets value has negative influence to the discount,while the other two factors have positive influence to the discount.Chapter Five was the concluding remarks of the full article.This chapter briefly summarized the conclusions of the study,and put forward a number of solutions of the discount issue of closed-end funds.