Analysis On The Spillover Effect Of Diversified Product Design On Market Share In China 's Fund Management Companies

After access-threshold relaxed, Chinese Securities Investment Funds industry shows rapid developments which reflect on increased numbers of fund management firms and sorts of funds. However, effects of product differentiation on Fund Company’s market share need to be considered. Clearly, whether the product differentiation shows spillovers on market share of one fund management firm, market share of individual fund, or that of one type fund products, is what this thesis focuses on. Further, investment preferences of individual and institutional investors are usually different, and whether this demand difference affects strength of above spillovers is another aspect performed by this paper.This article mainly based on theoretical explanation and findings on empirical studies from many scholars. However, we need to combine the available references with local characteristics in Chinese securities fund market. First, the empirical design starts with spillover’s identification, i.e. the effects on market share of one fund management firm’s managed assets, market share of individual fund’s managed assets, and that of one type funds’ managed assets from Fund Management Company’s product differentiation are empirically studied using unbalanced panel data analysis. Second, regression analysis between funds’ managed assets market share contributed by different types of investors and Fund Management Company’s product differentiation is performed sequentially.The main conclusion from this research is that, product differentiation strategy implemented by our fund management firms makes positive effects on enhancement of market shares of their different levels of fund products. In addition, the strengths of this spillover are various among individual and institutional investors. More precisely, institution investors prefer more on diversity of fund products. Based on this finding, suggestion for fund management firms’blossom was put up with at the end of the thesis.