An Empirical Study On The "Redemption Anomaly" Of Open-ended Funds In China

China's open-end funds are developing very rapidly.In just one year,the number of open-end funds has increased from 3564 to 4361,and the number of public fund managers have grown to 123,with 1722 fund managers and more than 400 fund sales organizations.Equity and bond funds account for 40 percent of open-end funds.The proportion of hybrid funds accounts for almost 48% of the total number of open-end funds.Among them,the equity fund increased by 791 from 661,and the net value increased by more than 50 billion yuan,an increase of 7.6 %.The hybrid funds increased by 1707 from 2096 and the net value discreased slightly 3%.Bond funds increased from 781 to 989,and the net value increased by more than 40 billion yuan,an increase of 2.9 %;At the same time,the open-end funds have also achieved good performance.Since the establishment of A-share,the market as a whole has fluctuated greatly,but there are still a number of fund products that have achieved more than 10 times the income since their establishment.The open mechanism of open funds determines the characteristics of open fund redemption.The investment is mainly based on the performance of the fund to judge the good or bad of the fund,but there has been a phenomenon that the better the performance of the fund,the more the fund has redeemed,that is,the "redemption anomaly".Most of the previous studies used the data of Equity funds,and few studies on hybrid funds and bond funds,and there is no unified index for the selection of fund performance and the research is not enough.Therefore,this paper selected the quarterly data of 93 partial-equity hybrid fund and 29 bond funds that were representative between January 2008 and December 2017,and discussed the impact of fund performance on net redemption through balance panel data.The research is mainly studied from three aspects: Firstly,building models for hybrid funds and bond funds,respectively,to study the impact of fund current and previous performance on net redemption.Secondly,introducing securities market trends and fund current performance cross-items to explore the relationship between current performance and net redemption under different market conditions.Thirdly,discussing the existence of "redemption anomaly" from the perspective of individuals and institutional investors.Through the empirical analysis,this paper finds the following conclusion: Firstly,the fund current performance of partial-equity hybrid fund is negatively related to the net redemption of funds,investors are reluctant to redeem the fund,there is no disposal effect.The previous fund performance of the hybrid fund is negatively correlated with the net redemption of the fund,but this relationship is weakening,indicating that investors pay more attention to the fund current performance.The bond fund current performance is negatively related to the net redemption,indicating that there is no "redemption anomaly".Net redemption is positively correlated with the previous fund performance,which indicates that bond funds have "redemption anomaly" in terms of the previous fund performance.Bond funds have lower returns and lower risks,and investors will redeem the fund if they get a certain return.Secondly,for the current performance of the hybrid funds,there have "redemption anomaly" when the stock market trend fell by more than 36 points.This paper argues that,on the one hand,although the performance of the fund is better,the net redemption is smaller,but because the stock market trend has dropped greatly,people have panic,"herd effect" is obvious,investors are irrational,the investors have profited a lot,people disposed the profitable funds,there have disposal effect.On the other hand,some previously well-performing funds may have been overvalued,and some poorly performing funds may have been undervalued,it is precisely when the trend of the stock market is declining that some of the stocks that falled sharply take the opposite trend:investors will sell highly valued funds.But,bond funds have nothing to do with market conditions.Finally,for hybrid funds and bond funds,there is no "redemption anomaly" for both individual investors and institutional investors in terms of current fund performance,and the absolute value of the regression coefficient of individual investors' fund performance is greater than the absolute value of institutional investors' fund performance.Individual investors are more in pursuit of good performance funds,which may be because institutional investors can analyze the financial statements to conduct research,early allocation of good performance funds.As a whole,this paper studies how to facilitate investors to make investment decisions,fund managers to supervise funds and regulators to formulate reasonable legal policies.