Discount Of Closed-end Securities Investment Funds Transactions Empirical Research

Usually, closed-end fund prices deviate substantially from net asset values(NAV). Some time closed-end fund is traded at a premium to NAV, but it is more often traded at a discount to NAV, which is known as discount trading of closed-end fund. It is a general phenomenon in the world and a puzzle in the financial field to this day.This paper conducts a meaningful analysis and tries to answer the followed questions: firstly, what is the character of the closed-end fund discount in Chinese market; secondly, which factors affect the discount trading of closed-end fund and what is the extent of the factors. The author carries a deeply research to the phenomenon of discount trading of closed-end fund .n Chinese market included several points: the investor sentiment of security market, the liquidity capacity of investment portfolio of fund, the expected performance, the capability of fund disperses non system risk, and other rational factors which affected the discount extent of closed-end fund, such as the scale of fund, the ratio hold by insurance companies. NAV. the anticipation of dividend. The paper has a test with corresponding statistical model, and puts forward several explanations. At the same time, the paper gives some suggest to improve the bordering condition of closed-end fund in Chinese market, and to discipline the development of investment fund of China, and to normalize the trading price of fund, and to lead the investors to build up the correct idea of investment.