Martin Currie China Fund Investment Strategy

"China Fund" is a closed-end fund listed in the NASDAQ stock exchange in the United States in 1992 and its manager is Martin Currie Capital Management company who comes from the United Kingdom. Since its establishment in 1992, "China Fund" has achieved outstanding performances and earned significant profits for investors and its net asset value has increased by nearly five times and the 10-Year cumulative rate of return has exceed 500 percent. So this paper will take "China Fund" as the object and focus on the main line of the investment portfolio construction to find out Martin Currie's investment strategy in chinese capital market through analyzing the allocation and value of the Fund assets.This thesis is composed of seven chapters. The first chapter is the introduction which covered the article background, research ideas, research methods as well as the practical significance of the paper, including innovativeness and deficiencies. The chapter two involves the Fund's investment policies, investment performance and so on. The chapter three portrays the logical chart about this paper, it firstly summarizes the systematic exposition for the investent portfolio construction about institutional investors in theory, and then discusses the construction situation of Martin Currie China Fund. The chapter four focalizes the analysis of the structural characteristics about investment portfolio of the Fund. This part outspreads in turn the characteristics of the Fund's asset allocation, industry configuration and allocation of stocks. The chapter five selects the most representative stock in the Fund's A-shares portfolio to investigate the Fund's strategy for choosing stock through evaluating value on it. The chapter six is an empirical analysis of construction of the Fund's investment portfolio. Here, we will select the A-share data come from China Fund's annual report in 2007 to verify the effectiveness and risk characteristics relating to investment portfolio of the Fund through the application of the Markowitz Mean-Variance Model and the Single-Index Model. Finally the seven chapter sums up the investment strategy of Martin Currie China Fund on the basis of the analysis above all the chapters.