Research On Competitiveness Of Domestic Fund Companies Based On Factor Analysis

Great unprecedented changes have taken place in Chinese fund industry,mutual recognition of funds in domestic and Hong Kong area.RMB's entry into SDR.along with the connection of Shenzhen and Hong Kong stock markets,all these have promoted the opening of Chinese asset management to a large extent.These new changes have brought unprecedented development opportunities for fund industry,however.what needs to be paid attention to is that there are still much risks behind these opportunities.The new Fund Law issued in 2013 allows security and insurance companies as well as other financial institutions to enter the asset management area.which makes the competition in fund industry become more fierce.All these mean fund companies have to face more difficult challenges if they want to survive in fund industry.Therefore,Chinese fund management companies must enhance their competitiveness so that they will not be eliminated by the market.Based on the theory of enterprise's competitiveness.the writer designs an indicator system,which includes five indicators of firm size,personnel stability,management ability.investment management and product innovation.to evaluate the comprehensive competitiveness level of domestic fund management companies.The writer selects top 30 companies as samples according to companies' fund management scale by the end of 2015.analyzing their competitiveness development state from 2013 to 2015.Through factor analysis,the writer finds that competitiveness of fund companies mainly be affected by investment ability.product operation,firm size,personnel stability and debt solvency,among which investment ability accounts for the highest proportion.Then the writer divides the sample companies into five various categories by using systemic clustering method,and pointing out strengths and weaknesses of all categories.At last,through dynamic analysis method,the writer analyzes the development state of these fund companies from 2013 to 2015.Based on the above empirical results and combing with the current state of domestic fund industry,the writer puts forward some methods to improve the competitiveness level of fund management companies.These methods include increasing capital strength by listing of the company,adopting global asset allocation strategy,expanding sales distribution channel,operating lawfully,improving innovative ability,establishing own brand,strengthening professional training of fund manager,popularizing fiduciary duty culture,improving employee motivation mechanism as well as implementing divisional system.