Empirical Study On Performance Comparison Between Closed-end Funds And Open-ended Funds In China

As the capital market of china is resuscitated,the security investment fund becoming more and more important,and it will show us it's importance and necessary.Looking back upon the developing process of security investment fund in various countries,we can see it went from closed-end fund to open-end fund one.As fund market in our country on it's primary period,great contribution would be made to it,if we research and compare the two different organization forms as well as summarize the experience and lessons from transition of closed-end fund in mature security market.So the scholar in our country focus on whether the performance of fund has exceed the market,and whether the performance of open-end fund has exceed the closed-end fund.This paper use the reference of the research method in the already existed literature,and selects out of several fund managers who managed one closed-end and one open-end funds for comparison in terms of yield and risk-adjusted performance results, timing and security selecting capability during the period from 2004.3 to 2005.3 and 2006.4 to 2007.4.Despite the influence of the manager's ability,the difference between them would be explained by the different form of the open-end and closed-end fund.The empirical test revealed a moderate difference in favour of open-end fund in 2004.3 to 2005.3,and a great difference in favour of open-end fund in 2006.4 to 2007.4.In 2006.4 to 2007.4 the performance of the open-end fund is better than closed-end fund.Our findings have remarkable policy signification.As the time running,the behave of the open-end fund is more and more mature,and it's performance became better than closed-end fund.Now in our country, the amount and the size of the open-end fund is increasing continuance.,but the closed-end fund became stagnancy.It's better to take action to change the old form than leave the closed-end fund marginalized.Because the closed-end fund in our country has a great amount of share,if we let it marginalized,it may influence the stability of our capitial market.So the best way for the closed-end fund is to transfer it's form quickly.