Chinese Institutional Investors Holding Characteristics Of Study

The stock market is important in the whole economical system. Its development isconcerned with the national economy. The institutional investors are the body of themarket. They have a lot of capital, and their behavior of the investment action willinfluence the market. In our country, their development is quick, and they have the powerto guide the market development.The article mainly researches the holding characteristic of the organizationalinvestment. The work and conclusions of this paper are as follows:Firstly, we test holding characteristics of institutional investors by empirical. By thedata analysis of China Southern Fund Management Co., LTD. and 16 closed-end funds,we conclude that the different types of investment funds, which abandoned the long-heldclassic investment strategy, show the same investment characteristics which areshort-term holding investment. Meanwhile, institutional investors are concentrated inholding stock of certain industries.Secondly, we analyze development situation of foreign and domestic institutionalinvestors. In the foreign markets, institutional investors develop quickly and have largescale. And domestic investors still have large gap with the foreign countries. We find thatin our country institutional investors have become market leader. And the securitycompanies have little power and social insurance funds own more power. Corporationannuities become the new vigor in the stock market, and insurance corporations is readyfor entering the stock market.Secondly, by duration model we give the reason for frequent trading of institutionalinvestors. Empirical analysis shows that the return rate is positive with holding length.Some investors, the longer the investment hold some portfolio, the bigger the possibilityof the loss. This means that disposition effect is exit, and investors tend to sell stocks thatyield and hold ones that loss.Thirdly, we make use of prospect theory to explain the phenomenon of holdingconcentration. In this paper, we build a new model which is based on prospect theory.And psychological parameters are added value function. We simulate the new equation.We find that the concentration of shareholdings is directly proportional to the investmentreturn ratio.