Etfs In On China's Open-ended Index Funds Empirical Research

As a newly emerged indexing investment funds, ETFs is among the major and most important new financial products in the international investment market in the last ten years. Due to its fast development, it has become an important part of the global fund industry. Our country issued the Shangzheng50ETF at the end of 2004, which is the first ETFs product in China and has aroused the widespread attention of the domestic academic and business circle. Now several other ETFs are arranging to be issued.The unique character of ETFs makes it far more ascendant than those conventional index funds. However, the success of the international mature market proves that investors don't take their eyes off the index funds simply because of the ETFs. In our country the fund industry has developed for only six or seven years, and the idea of indexing investment has just been formed. Many essential problems have not been solved. No in-depth researches have ever been conducted by the domestic academic circle upon the effects of the fast developing ETFs towards the open-end index fund industry in our country.My thesis compares the characteristics of both ETFs and conventional index funds according to the literature on indexing investment home and abroad as well as the development and success of both funds. By empirical analyses on the changes of various aspects of the conventional index funds during the period of issuing Shangzheng50ETF (from 3^rd season 2004 to 3^rd 2005), including the size of funds, situations of holders, shares in holding, net values and extra profits, some tentative conclusions are drawn as follows: (1) Shangzheng50ETF has attracted more capital to the indexing investment, and it has not brought a permanent extrusion domino effect to the conventional open-end index funds. (2) Shangzheng50ETF has attracted more institutional investors to short-term investment. (3) The issuing of the Shangzheng50ETF has enhanced the management style of the index fund with the same tracking index.Since the problem is very complex and the time to collect the data is not well enough, this research still needs improvement. As for that, the author provides some suggestions for further study on this field which might be helpful. Finally some suggestions on the policy are offered based on the research and the status of the indexing investment in our country.