Does Securities Companies Transfer Interest To Fund Companys?

By the end of January 2017,our country already has 107 fund companies.Fund companies which manage the assets of 9.2 trillion,is the main investors institutional investor.During these fund companies,50 fund companies are controlled by securities companies,and 25 fund companies have common shareholders with securities companies.Securities companies and fund companies both have conflicts and complements with each other in the business.Securities companies have an unparalleled information advantage in the IPO process,when they have common shareholders with fund companies,there will be interest delivery between them,including securities companies transport interest to fund companies and fund companies delivery interest to securities companies.In the first situation,affiliated funds may have information advantages over non-affiliated funds,affiliated funds can subscribe more stocks to earn extra benefits and subscribe less stocks when stocks have "low-quality".In the second situation,the affiliated fund companies deliver benefits to the securities companies by subscribing larger amount of stocks which have poor return to help securities companies finish the IPO smoothly.We research the transfer of benefits between securities companies and the fund companies in the information advantage and the conflict of interests aspects.Including new shares inquiry,matching and extra return between affliated funds and non-affiliated funds.The results show that there is a significant difference in the subscription behavior between the affiliated fund and the non-affiliated fund.The purchase index of the affiliated fund is significantly higher than that of the non-related fund.To further verify the large number of affiliated fund purchase is because of the information advantage or interest conflicts,we further research the different behaviour of affiliated funds and non-affiliated funds in high-quality stocks and low-quality stocks.We find that in high-quality samples,affiliated funds subscribe more bidamont with higher bidmoney compared with non-affiliated fund.But when it comes to low-quality stocks,bidmoney of affiliated funds is lower than non-affiliated funds.What's more,different market situation also influence affiliated funds and non-affiliated funds's bid behaviour.In the bull market affiliated funds subscribe higher bidmoney and bidamount than non-affiliated funds,but in the bear market fund purchase price of affiliated funds is significantly lower than the non-associated fund.Both in the bear market and in the bull market,the associated funds are playing the role of "relationship households",the underwriter through the associated funds to send information,making the interests of related funds to be protected.The article first reviews the related literature in our country and abroad,then analyse that there will be information advantage and the conflict of interests between affiliated funds and non-affiliated funds in the second aspect.In the third aspect,the article describe the main inquiry system in the world at present and the development of the pricing system in China.Then the paper puts forward three hypotheses.In the fourth part and fifth part,the paper conduct empirical research in detail.During the empirical research,we first research if there are significant differences between affiliated funds and non-affiliated funds' subscription behaviour.Then we further analysis the causes of the differences.What's more,we analyse and explain the holding behavior of affiliated fund companies.The article found that there are significant differences between affiliated funds and non-affiliated funds in the purchase process,The subscription proportion of affiliated funds is significantly higher than the non-affiliated funds.We further divide the stock into two parts,"high-quality" stocks ang "low-quality" stocks and find that there are no obvious differences between affiliated funds and non-affiliated funds in the"high-quality"parts,but when it comes to "low-quality"parts,affiliated funds spend more money to subscripe stocks,which is different to non-affiliated funds.At last,we research the shareholdings of affiliated funds and non-affiliated funds.affiliated funds will sell the "low-quality" stocks quickly when they got it.ln the sixth aspect,we summarize the defects of articles and look into the future.The article research the fund purchase behaviour and holding behaviour from the aspect that fund companies and securities companies have common stockholders.From the empirical results we conclude that affiliated securities companies will deliver interest to funds through information delivery,as a result the affiliated funds could make use of the information superiority to arrange the new strategy and obtain the excess return.This article enriches the research on the interests of securities companies and fund companies,also provide more comprehensive and intuitive information to other investors,helping them make a rational judgment about purchasing and holding stocks.and also provide data support and theoretical basis to strengthen supervision in the future.Therefore,the research of this paper has some guiding significance for the future theoretical research and practical activities.