The Research On The Liquidity Risk Of Open-end Fund In China

As a kind of collective investment,the open-end fund in China has developed rapidly.Open-end funds free redemption make open-end funds get development of fleetness,but it also leads to the unavoidable liquidity risk to open-end funds.So it's important to measure and manage the liquidity risk effectively.The open-end funds are new in our country,and the liquidity risk is obvious for the particularity of the securities market,Catered for the development of open-end funds,the thesis is focused on the liquidity risk of open-end funds from taking effective measures.Trying to provide some valuable advice and thoughts to measure sand manage liquidity risk of open-end funds in China.This paper analyzed the theory of open-end funds first at the background of open-end funds present situation in China,explained the formation mechanism and influencing factors of open-end funds,and summarized the specificity of open-end funds in China.Then this paper proposed new indicators on the basis of model VAR which was different from traditional indicators and structured a new risk measure model L_VAR.Finally this paper attempted to measure the liquidity risk in China by L_VAR, and make correlation analysis between liquidity risk and other factors.The conclusion showed that the traditional model was not appropriate;the liquidity risk of open-end funds had different relevancies with other factors.The conclusion could help investors and fund managers pay attention to the liquidity risk of open-end funds;and analyze the investment strategy.