A Study On Influential Factorson The Change Of Stock Type Open-end Fund Share In China

As a the main types component of funds market, open-end fundis different from close-ended fund in fund size, information disclosure, market place, the survival period and other aspects.Open-end fund’s redemption purchase back mechanism is one of the most essentialdifference between the closed-end fund. Open-end fund share purchase and redemption to the Fund has brought uncertainty. This feature not only brings to the fund manager asset management, risk control challenges, but also cause the Fund’s trading behavior, and through fund a tremendous impact on the market price fluctuations will be transmitted to the market. Obviously, purchase and redemption brought about changes in open-end fund’s shares on the open-end fund’s survival and development and the stability of the market has a significant impact.In this paper, the main research is about stock type open-end fund shares which requires a large share of China’s fund market. The main research object is the fund share change. This paper attempts to change the Fund’s shares to reveal the internal mechanism of the determinants of changes in fund shares. It selects these factors, including:fund performance, fund dividends, fund investors structure, stock market trends and other factors.Based on the above theoretical analysis, this paper selected all39stocks open-end funds established before2005as the research object, usingthe24quarterly panel data of Ql2005to Q42010regression analysis of factors affecting.Finally, the conclusions are:The change rate of fund sharesis positively correlated withsecurity market trend, confirming the "redemptive paradox" phenomenon; The change rate of fund shares is negatively correlated withaccumulated net; The change rate of fund shares is strongly positively correlated withdividend payment; Institutional investors and rates of fund shareschange in the proportion of negative correlation; The stock market trend is negatively correlated with changes in fund shares, then confirm the existence of positive "feedback traders hypothesis" phenomenon.Finally,we reach the fundamental conclusions of this paper and then put forward several policyrecommendations from fund investors, fund managers and fund supervisors’ perspectives.The policy recommendations are as follow:the fund investors should strengthen the understanding of investment products and theory of knowledge;the fund managers should improve the methods of Management,fund supervisors should regulate the market and strengthen the guidance and so on.