Research On The Security Investment Selection Capabilities Of The "Sunshine" Private Fund Managers

With the constant development and perfect of the securities market and the rising diversified financial needs of residents, our country generated a large demand for high-end financial services. The rise of the sunshine private fund industry met the demand for high-income groups higher return on investment. Our private fund first appeared in 1993,from 2007, the size of the sunshine private fund entered explosive growth phase. The sunshine private fund not only becomes an important investment tool for the Chinese financial market, but also for residents of high-income groups provides a diverse and differentiated investment channels at investment banking.By evaluating the security investment selection capabilities of the fund managers,sunshine private fund companies correctly assess the fund manager’s creation ability,investors can correctly choose their own investment products, the securities regulatory authorities can fund evaluation conclusions as an important basis that constantly improves regulatory rules and revise relevant policies and regulations. Therefore, Studying sunshine private fund industry plays an important positive role to promote healthy development of the financial markets. Not only provide the better basis for fund investors, but also by exploring the sunshine private industry lay a solid foundation for the future regulation and development,and thus make it flourish.This paper describes the definition, classification and characteristics of sunshine private fund, as well as comparative analysis with other funds. Secondly, from a legal, market regulators and environmental perspective analyzes the sunshine private fund generation, and comprehensively discusses the status of sunshine private fund and fund managers the overall situation. Then, the paper evaluated the comparison of various evaluation methods for the securities investment selection capabilities of fund managers, and choosed empirical TM model and HM model. In this paper, from January 1, 2013 to December 20, 2015 within the study period is divided into "up market", "down market" and "adjustment market", we divides according to the personal background of the sunshine private fund managers into public school, brokerage school and private school. Then, we use software EVIEWS panel data in different market conditions for empirical research on the fund manager’s stock selection ability and timing ability, respectively. Finally, based on empirical results and existing problems of sunshine private fund managers, this paper presents recommendations which improve the security investment selection capabilities from sunshine private fund managers, sunshine private fund firms and the securities regulatory authorities.