China Fund In The Stock Market Performance And Analysis

Main research of this text is the behavior of the Chinese fund on the stock market. Our country fund have already so far to develop from October 1991, its operation have more and more great impact on stock market as its scale growth. In this situation, the standardizing operation of the fund becomes the essential condition of sound development of Chinese stock market. But because our country fund's administration structure is not complete from the beginning, The fund exists not standardize operation while beginning. The "Finance and Economics" magazine in 2000 has made the investigation in this aspect, and obtained the conclusion that fund did the shady-deals. The open-ended fund more complete than the closed administration structure began to issue after 2002, and occupy a leading position gradually. But the situation has not turned better.This text research into the fund's risk-free income and high turnover rate and the relation of fund's position with the stock's price. This text make a conclusion that The fund exists not standardize operation. In the risk-free income aspect, the fund has been earning the risk-free income through the price difference between the primary markets and secondary market, so though the achievement of the fund wins the big bid, they have not really run and obtained very good achievement in investing in stock market. In the high turnover rate aspect, the fund's turnover rate was higher than the market since 2002. This is not fit with their "value investment" belief. In the relation of fund's position with the stock's price aspect, funds have heavy position when stocks' price is high while have low position when price is low in Chinese stock market's several big booms including 5.19 booms, 6.24 booms, 1649 booms, in 1,783 booms. So I can draw a conclusion that the fund managers are cheating the fund holders.The funds' operation is not standard mainly because there is little effective supervise structure. The effective supervise fund structure is refers to the structure,...