China Open-end Fund Liquidity Risk And Its Management

Open-end funds, a new vehicle in security market of China, combines the liquidity& convenience of current account and the high return of portfolio, which cause investors' general concern since they have been issued in September 2001. Open-end funds liquidity risk refers to the uncertainty that fund managers can redeem the portfolio at stable price in a given period when a large-scale withdrawal occurs, the extremes of which is quite similar to a run on the bank. Allowing for the developing security market and the inexperienced investors in China, fund managers have to weigh profitability of fund asset against liquidity involved, so as to reduce the loss of net fund value and to drop the possibility of liquidity risk due to investors' withdrawal. These are the keys to the study of open-end funds liquidity risk.This article unifies the our country concrete national condition, through the model overseas advanced fund managerial experience, has used the research mentality which proceeds in an orderly way, first proposed the open-end fund as well as the fluid risk question, and to affect the fund fluid risk to the third chapter the formation mechanism and our country fluid risk particularity carries on the analysis, this part has mainly analyzed the fluid risk formation mechanism, it is a regeneration process which redeems by the fund investor causes; But looked from the deep level reason that, the open-end fund property profit and the fluid contradiction are its fluid risk root. Receives, considered our country stock market the actual situation was the union national condition sentiment through the open-end fund property structure, the open-end fund investment environment and our country goes on the market the company quality particular these three each one aspects to analyze our country open-end funds fluid risk particularity. The fourth chapter multianalysis open-end funds investor has redeemed the behavior, is this article key point. First the present situation which redeemed to our country open-end funds bitter experience has carried on the systematic introduction in first, at present redeems the characteristic which the resurgence presented is the endurance, comprehensive and large amount. Because the investor redeems the behavior the many kinds of factors influence, therefore has redeemed the behavior in this chapter second center multianalysis investor. First analyzed the investor to redeem the motive, then to affected the investor to redeem the behavior the factor to carry on the discussion. Investor's investment idea redeems the decision-making to it to have the important influence, speaking of the fund originates, usually originates the proportion in the fund which the organization investor occupies in a big way, the open-end fund originates the stability is also better. But in our country, organization investor then the relative insufficiency, individual investment accounts for the proportion which the open-end fund originates to be bigger, this became the fund to redeem the pressure an important origin. The extremely important factor which more over, the fund basic surface situation also is the fund investor when makes redeems decision-making considered. With the fund basic surface related factor including the fund achievement, the fund type, the fund investment strategy, the fund draws bonus with the charge pattern and so on, regarding this has carried on the detailed discussion. The fund achievement is a target which the investor extremely pays attention, because our country investor invests the idea not to be mature, short line operation thought serious, this creates the open-end fund achievement better, redeems the pressure to be instead more serious. In addition, the stock market large-cap trend also redeems the behavior to the investor to be also influential, this article separately redeemed the behavior to the investor in large-cap to be in the rise cycle and falls in the cyclical performance to carry on the discussion. And to third, establishes many Yuan linear returns model, has carried on the real diagnosis analysis to open-end fund redeeming rate.Finally in elaborates in our country open-end fund fluid risk guard management, separately from the fund property management angle, the debt management angle as well as inside and outside system construction angle has conducted the research to the open-end fund fluid risk management. This article analysis already has from the microscopic angle embarks, also has from the macroscopic angle carries on. Speaking of microscopic, stands in the fund management company's stand point, how studies through measure and so on reasonable disposition property manages the fluid risk; Speaking of macroscopic, stands in the supervise and manage angle, how discussed through the formulation reasonable laws and regulations, the consummation transaction mechanism and so on has helped the open-end fund to melt the fluid risk.