China's Open-end Funds, Non-systemic Risk

In September, 2001, the found of the first Open-end fund in China, "Hua An Innovation", opened China Open-end fund testing program. By August 31st,2004, there are 94 set of Open-end funds in China, issuing RMB 28.27 billion totally. Open-end fund is experiencing a fast development in China.A lot of problems have been found in the development process of Open-end funds. Some problems are due to the Open-end funds themselves, yet some others are due to China's special situation. Therefore, it is very urgent to carry out the study on the process risk of Open-end fund.The non-system risk of Open-end fund in China is different from the foreign countries'. Therefore, firstly, the paper focuses on management risk, liquidity risk and moral hazard of the non-system risk. Secondly, the paper analyzes the features, status and hazard of the risks above. In this part, an analysis upon fund manager's capacity in controlling non-system risk is also presented. Thirdly, the paper puts forward a proposal regarding to how to control these three risk. At last, the author accounts his personal anticipation on the development of non-system risk control by perfecting external conditions.Hopefully, this paper could be helpful to China Open-end fund non-system risk control so as to develop and promote the achievement of China Open-end fund.