The Comparative Study On Stock-Holding Preference Of China’s Securities Investment Funds And Broker Set Of Financial Products

As two indirect ways of managing money, securities investment funds and brokerages set of financial products have a lot of features, such as expert management, collective investment, diversify risk and sharing benefits and risks. Therefore, they are more and more favored by many investors. Securities investment fund is the largest institutional investors in China’s securities market, while the brokerage set of financial products has played an important role in China’s capital market. So, their investment behavior will exert a huge influence to the stock market. Whether the fund or brokerage set of financial products, their investment preferences are bound to reflect on some properties of the stock. But there is no literature carrying on the comparative study of these two types of institutional investors holding characteristics until now. Therefore, the study of holding preferences of funds and brokerages financial products can not only provide theoretical support and the actual reference value for the small and medium investors, can and also provide an important basis for the development of laws and regulations to the supervisors.This paper uses the empirical method to examine the holdings preferences of both the securities investment funds and brokerages set of financial products, establishes a multiple regression model of the shareholding percentage of these two institutional investors and the company fundamentals and market performance indicators which are most likely concerned in the stock selection process. By using a stepwise regression method, institutional stock picking produce significant indicator variables will be found from the first quarter of2010to the third quarter of2012. Based on the above analysis, the stock-holding characteristics and preference of securities investment funds and brokerages set of financial products are discovered in this paper. Finally, analyze and compare the regression results of every quarter to find out the investment philosophy and investment style of the fund and brokerage set of financial products, and provide not only the policy recommendations for the regulatory authorities, but also the reference to individual and institutional investors from a practical point of view.