Research On Liquidity Risk Management Of Open-End Fund In China

Since September 2001 when China's Open-end Fund was established,the domestic Open-end Funds suffered redemptions.In recent years,with the change of market,Open-end Fund of different categories have their own appeared in the case of redemption,large amounts of redemption of Open-stock Fund and the Open-monetary Fund occured in 2015 and 2016.With the development of the financial market,although the financial products are constantly innovating,the fund investment is becoming more and more diverse,but the management of fund liquidity risk has not been effective.The biggest feature of Open-end Fund can be purchased and redeemed at any time,because of this,Open-end Fund management in the operation process may face greater liquidity risk at any time,the world will face the problem of liquidity risk,but because of the particularity of China's financial market,the liquidity risk of Open-end Fund is particularly prominent.With the prevalence of short-term speculative philosophy in domestic investors,coupled with the systemic risk of security market and the lack of actual risk hedging tool,high liquidity sources matches illiquid assets exists,leading to the asymmetric structure of assets and liabilities,which also makes the securities market in China face intense redemption pressure no matter in bull market and bear market.These problems have increased the difficulty of liquidity risk management of open-end funds in China.Therefore,it is of great practical significance and urgency to study the liquidity risk management of our country under the special financial environment.In this paper,through the analysis of the two factors that affect the liquidity risk of fund—the redemption behavior of the investors and the liquidity risk of the fund assets,we research the liquidity risk of the fund.First,we research the factors which influence investor redemption behavior,and according to the characteristics of Chinese investorsin short-term speculation concept,put forward related suggestions for the prevention of the redemption behavior of investors;secondly,on the basis of previous researches,we adjust traditional VaR to La-VaR to research the typical asset in domestic open-end fund with mathematical analysis,and then research the liquidity risk of the portfolio in a domestic fund,finally draw the conclusion,and put forward relevant opinions.