Research On Open-ended Funds’ Ability Of Security Selection And Market Timing In China

Now, Open-ended funds has become an important role of China’s capital market after nearly nine years of rapid developments the development of China’s Open-ended funds, the investment products of stock market has been enriched,and the investors now have more investment opportunities. Open-ended fund manager’s security selection ability and market timing ability directly affect fund performance,so studying of the proposition has a practical significance for the fund management companies, the majority of investors and the relevant regulatory authorities.First, this paper described the research background and research significance of Open-ended fund’s security selection ability and market timing ability;Second,I gived a literature review of foreign classics, foreign literature and domestic literature that research on the Open-ended fund’s security selection ability and market timing ability. I also gived the general framework and innovations of this paper,the innovations mainly included the the adoption of panel data model,the expansion of traditional HM, TM models and the consideration of the model’s GARCH effects.The empirical part of this paper mainly included the following points:first, I have researched on the Open-ended fund’s security selection ability and market timing ability in the entire time period;second, I have examined the performance of the different types of Open-ended fund’s security selection ability and market timing ability in the different markets’quotes;third, I have examined the the performance of Open-ended fund’s security selection ability and market timing ability at the background of the financial crisis.Fourth,I have researched on the signle Open-ended fund’s security selection ability and market timing ability through the ARCH tests of the traditional TM, HM model’s random error term.This paper has received these important conclusions:the Open-ended funds have a strong security selection ability, but not have the ability to seize market timing at the overall time period;the different types of Open-ended fund’s security selection ability and market timing ability have a different performance in the different markets’quotes and the background of the financial crisis.Finally, according to the conclusion, the article has gived the analysis of the resons from the stock market’s structure and the information disclosure,this paper has also formulated the relevant policy recommendations.