An Empirical Study Of Selling Stocks At Top Of The Stock Market Of Chinese Fund Managers

With development of the Chinese security fund market, more and more people and Institutional Investors invest in the fund. Compared with the stocks, the fund uses the investment portfolio risk diversification, to enable investors to avoid exposure to significant market risk. Compared with bank savings and bonds, the Fund's yield is relatively high and the Fund's liquidity is also the incomparable savings bonds.China's sustained economic development trend in the coming period of time will not change over the long term and the stock market will also reflect this situation. Focusing on value investing to share benefits of economic growth, the open-end fund will be able to meet the requirements of medium and small investors.While this paper studies one of the factors which affecting fund performance. That is during the volatility of stock market in the short term, the timing of fund managers escaping from the stock market. Mentioning the research methods, this article systematically reviews and summarizes securities investment funds, stock picking and timing ability research theory and method.This paper attempts to evaluate securities selection and market timing ability of open-end fund in China during the period of September October and November in 2007 and the period of June July and August in 2009 through the international matured T-M model. Selected 44 funds of different levels in the equity fund, using regression analysis, T tests, and then draw conclusions. During September October November in 2007,44 funds does not display significant stock selection ability, while Peng Hua Zhong Guo 50,Rong Tong Xin Lan Chou Hun He, CITIC bonuses, Jiao Yin Cheng Zhang, these four funds show a significant positive ability of timing. There are four top fund managers successfully escaping from the stock market. During June July and August in 2009, Hua Xia Da Pan Jing Xuan and Hua Bao Xian Jin Cheng Zhang display significant stock selection ability, while Gong Yin Jing Xuan Ping Heng,Guo Tou Rui Yin Chuang Xin, the two funds show a significant positive ability of timing.The outcome verifies efficient market theory, there is no fund manager can outperform peers, there is no fund manager can beat the market.