Chinese Open-End Funds Performance Assessment System Study And Empirical Analysis

As a principle style of security investment fund, open-end funds has been one of the most important institutional investors in Chinese securities market. On June 30 2005, the total net asset of Chinese open-end funds has reached to 338.1 billion yuan, which accounts for the total net asset of Chinese security investment fund 81 per cent; the total number of open-end funds issued has reached to 137, which accounts for the total number of security investment fund 72%. As more and more new open-end funds being established, open-end funds performance assessment draws a lot of attentions.The open-end funds performance assessment has both theoretical and practical concerns. The research in this area in China is still in its elementary phase. Therefore, this dissertation tries to review the issue of open-end funds performance assessment in different perspectives and make a comment on the traditional models or indexes of fund performance assessment. Using empirical analysis method, this dissertation suggests several new indexes which can overcome the limitations and shortcomings the traditional models or indexes adopted. Based on that, the paper makes a comprehensive analysis and conclusion on the traditional funds performance assessment, and sets up the open-end funds performance assessment system in China from four aspects. Owing to this system, author hopes people's knowledge about open-end funds performance assessment will be enhanced, and investors involve in open-end fund investment will get valuable information which can guide them make right decisions.