China's Open-end Fund Risk Management Applied Research

This thesis focuses on risk management of China's rapidly developing open-ended securities funds. According to the basic methods and procedures of risk management, it introduces some risk-measuring methods, analyzes the special characteristics of the risk that China's open-ended securities funds are faced with, and put forward some effective risk management measures. The final goal of research is to establish a Risk Management System, based on management process and VaR method, including risk recognition, risk measurement, risk evaluation, risk controlling, risk dealing, and the process of risk management evaluation and the feedback process of risk management.In Chapter Two, the basic theories of risk management and open-ended fund are explained, and the history and present situation of open-ended fund in China is concisely stated, and the running state and problems of risk evaluation and management systems of China's fund management company is discussed.In Chapter Three, a detailed risk analysis of open-end funds is presented, comprising the analysis of market risks, internal risks, liquidity risks, and the implements and methods of measuring these risks, as well as the special quality of the risks that confront open-ended funds in China's newly market. VaR Model is introduced in this chapter and is employed to evaluate and compare two open-ended securities funds in China, Hua'anInnovation Fund and Southern Steady Growth Fund.In Chapter Four draw on the risk management experience of developed financial markets for reference, a new system based on programmed management and VaR Model is suggested to cope with the risks confronting open-ended funds.In Chapter Five on basis of generally employed performance evaluation approach, Capital-Risk Adjusted Performance Evaluation Approach is introduced to apply to fund managers. Hua'an Innovation Fund and Southern Steady Growth Fund are chosen as the objective to test the new approach.