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Study On Liquidity Risk Of Open - End Fund In China

Posted on:2005-07-16Degree:MasterType:Thesis
Country:ChinaCandidate:D F LiuFull Text:PDF
GTID:2206360122985996Subject:Finance
Abstract/Summary:PDF Full Text Request
First, liquidity risk is defined as the risk that an investor will not be able to buy or sell an investment quickly because buying and selling opportunities are limited. Then the origin for the liquidity risk of open-end mutual funds is provided through the comparison between the open-end and close-end mutual fund. An overview of China mutual fund industry is presented. Further, a comprehensive analysis of factors those affect the liquidity risk is conducted. Based on this analysis, the unique characters of the liquidity risk of open-end mutual fund in China are demonstrated. The available sources of fund for the redemption are analyzed and divided into two categories: cash assets and equity assets. Different liquidity measures are designed to gauge the liquidity risk of each kind of assets. Also, the risk management systems are provided accordingly.Qualitative and quantitative methods are employed in this paper. We emphasize on the liquidity measures and liquidity risk management systems of each kind of assets. Hopefully, this paper can be some help for the asset management companies when they are encountered with liquidity risk.
Keywords/Search Tags:Liquidity
PDF Full Text Request
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