Research On The Performances And The Performances' Sustainability Of Equity Open-end Funds In China

With the advancement of China's economy,the financial market has also gained increasingly growth.As the main institute investors,the securities investment funds has increase their size largely and brought great vitality to the securities market.According to the data provided by the Asset Management Association of China,by the end of December,2016,in the mainland China,there existed 98 fund management companies;There existed 3867 public funds whose total net worth is 9159305 million RMB;In these funds,there were 3564 open-end funds whose total net worth is8525294 million RMB;In these funds,there were 661 open-end equity funds whose total net worth is 705902 million RMB.Therefore,researching China's open-end equity funds' performances,can reveal the inner operating mechanism of open-end equity funds' performances and advance the level of the studies of the fund industry.The thesis selected sample funds by the following principles: First,the selected sample funds ought to be established before June 30,2014 to guarantee the sample size is adequate to avoid the contingency of the performances of the sample funds.Second,the selected funds should not belong to index funds and QDII funds.The reason why the selected funds shoulde not belong to index funds is that the index funds invest passively.The reason why the selected funds shoulde not belong to QDII funds is that the QDII funds invest in the foreign markets.Third,the selected funds ought to be open-end equity funds.After one fund was eliminated because it didn't pass the stationary test,the sample contains 33 funds ranging from July,2006 to June,2016.The thesis used Carhart four-factor model to evaluate China's open-end equity funds' performances,finding that the funds' overall performance is better than the market average earnings obviously.Twenty-seven funds' extra yields are significant greater than zero,illustrating that the nine funds have took the extra yields;Nine funds' extra yields are less than zero,illustrating that the nine funds have not took the extra yields.The thesis appraised the persistence of China's open-end equity funds' performances,finding that the performances of China's open-end equity funds do nothave the persistence.No matter selecting one-month period,quarter,half-year period or one-year period as the period of observation,the performances of China's open-end equity funds do not have the persistence.When we selected one-month period as the period of observation,the performances of the funds which performance best have the persistence while the performances of the funds which performance worst do not have the persistence.