The Research On Domestic Funds Coping Strategies Under The Background Of Opening Market

This paper analyzes the gap between domestic and foreign fund industry from the perspective of product,under the background of further opening up of China's market and allowing foreign capital to set up fund companies.Although the mature development of the fund industry requires all parties to work together and cooperate with each other,which is a systematic project,in the current environment,the domestic fund companies can make efforts in the ability to active manage funds and to performance better.The empirical analysis indicates that the investment performance of fund companies with high proportion of foreign shares is better,as the investment style is more stable and the stock selection ability is better than purely domestic fund companies,but the timing ability is weaker than purely domestic fund companies.Joint Funds have chosen to operate in a more passive way of management.They are better at selecting high-quality stocks and holding them for a longer term,and they have obtained better Alpha returns and risk-adjusted returns.Domestic funds are better at timing trading,but their ability to explore the value of stocks needs to be further improved to win the recognition of more investors.The differences of pros and cons are significant,so the domestic funds companies should lay a solid base to face the opening market.