Performance Evaluation Of Open-end Funds In China Based On DEA And Super-efficiency Model

With the rapid development of financial market in our country, funds, like banks, insurance and securities become one of leading roles. In the meanwhile, since China issued the first open-end fund in 2001, the open-end funds have developed rapidly and become the most important part of funds markets in place of closed-end funds. So, it is very important to establish the rating system and evaluate scientifically the performance of open-end funds in China.On the basis of the research condition at home and abroad about the fund performance, this paper combines Chinese fund industry and develop reality, selects 53 open-ended funds which issued before Dec 31,2003, trying to study the performance of Chinese open-funds with qualitative and quantitative methods. The paper takes initial net value, standard deviation of daily returns, ratio of expenses as input indicators, mouth average earned ratio, ending net value as output indicators, adopting DEA and super-efficiency model to calculate the efficiency of sample funds between july3,2006 and june26,2009 by linear programming.By empirical analysis, conclusions can be drawn as follows:on the whole, Chinese open-funds efficiency is low and isn't persistent; Bond funds is relatively effective; Management ability is a main factor to infect Open-funds efficiency, but the size of the fund is irrespective. Lastly, the author puts forward some suggestion on the development of open-end funds in China on the basis of the empirical research result.