Research On Fund Asset Network Based On China's Securities Market And Its Impact On Fund Investment Capability

For a long period of time,due to the imperfect development of China's financial and capital market system,there are a large number of retail investors in the market.The investment pattern formed is mainly retail investors,supplemented by institutional investors.This unhealthy investment pattern once It is considered to be the main factor in the frequent occurrence of abnormal phenomena in the market.In order to guide the rational investment of investors and maintain the stability of China's financial and capital markets,the CSRC proposed at the end of 2000 to vigorously develop institutional investors' strategy.The fundamental purpose is to change the status quo.Under the correct guidance of the national policy,the development of China's financial and capital market system has gradually improved.At the same time,China's financial and capital markets have gradually evolved into a complex network of connections.Participants in the market,whether institutional or retail investors,do not exist in isolation,but coexist in complex networks that are related to each other.As a core component of the financial and capital markets,the fund market is self-evident.There are also various networks in the fund market,typically such as fund asset networks.The fund is closely linked through these complex networks of relationships.As the most important and largest open-end equity fund in the fund market,due to its inherent characteristics,it needs to face the pressure of investors to redeem,especially when the market is undervalued by investors.The pressure to redeem will be even greater.In order to raise cash that may be paid at any time in advance,fund management companies usually give priority to selling those stocks that are heavily held and have better liquidity.However,the funds are cross-shareholdings,and they are all in one,so they cannot ignore the network relationship in the fund market.For the funds in the network,how the investment behavior is affected by the network and what kind of economic consequences will be the interest of this paper.From the perspective of complex networks,it is deeply discussed whether the fund asset network has an impact on the timing of fund selection and its impact mechanism.This has very important theoretical and practical significance for investor fund investment and fund portfolio management.The research sample selected in this paper is the most influential and largest open-end equity fund in the fund market.The sample period is from the third quarter of 2004 to the fourth quarter of 2017.All fund data and stock data are from the CSMAR database.In order to explore the impact of fund asset network on fund behavior and its impact mechanism,this paper uses a combination of theoretical research and empirical research,qualitative norm analysis and quantitative research.Based on the characteristics of the fund's cross-shareholding,this paper constructs the fund asset network with the heavy stocks as the link point,and uses the methods of descriptive statistics and fixed-effect panel regression models to explore the fund from the perspective of investment ability(time selection,stock selection ability).The intrinsic mechanism of the asset network.The main conclusions of this paper are as follows:First,in China's fund market,the fund asset network constructed based on the investment target shows the characteristics of the right-pointed peak fat tail.The fund asset network intensity is a gradual decline during the study period,which can be subdivided into three different stages: rapid decline,slow decline,and stability.Second,the overall return on investment of China's open-end equity funds is OK.Investors who choose investment funds can obtain relatively stable returns.However,because the investment performance of different funds is quite different,the returns of different funds are different.In view of the large scale of China's fund market and the cross-shareholding of foundations,there are various fund networks in China's fund market,which are broadly divided into fund asset networks based on investment targets,social property networks based on social relationships,and fund holdings.People network.Empirical studies show that the performance of funds in the asset network relationship is significantly affected by the network,and this effect is a positive spillover effect,which is still established under different market conditions.Third,the funds in the fund's asset network have a good ability to choose stocks,and their timing ability is also reflected,depending on the situation.Fourth,there is indeed a “redemption vision” in China's fund market,that is,investors will chase those funds with poor performance and give up those funds with better performance.This anomaly confirms the saying: "Two birds are not as good as a bird in the forest." Investors generally have this kind of mentality,that is,the bag is safe.Fifth,the size of the fund and the age of the fund(ie,fund visibility)also have a certain impact on the fund's investment performance and investment capacity,which will vary from case to case.Some large-scale,older(ie,more well-known)funds,their investment strategies and asset allocation methods often lead to small and medium investors in the network.At the same time,the paper also gives the following recommendations:The results of this paper show that from the perspective of network structure,it can provide a new understanding perspective and empirical support for the institutional investor's herd behavior(the size of the fund has an impact on the stock selection ability).Here,based on the results of this paper,the following suggestions can be made: First,regulators should control and monitor the financial risks arising from the imitation of institutional investor behavior from the perspective of the network.Second,regulators need to understand the hot spots of fund managers' investment,and the changes in trends,prevent insider trading,over-investment,punish alleged "collusion" and manipulation of stock prices,and establish a fair market order.Again,investors should pay attention to the fund network and obtain valuable information from the network to obtain excess returns.Finally,investors should not blindly pursue the “falling bags for security”.For funds with good performance,they can appropriately bless or maintain the original share and play an encouraging role.For those funds with poor performance,they should withdraw funds in a timely manner,and they must not have gambling psychology.They should invest rationally and contribute a small force to the healthy development of the fund market and the stock market.