An Analysis On Character And Effect Factors Of China Closed-End Funds Discount

Usually, the closed-end funds are initiated at a premium to net asset value (NAV), but they are traded at discounts during most of the time consequently. And the symptom that the closed-end funds are traded at a price less than NAV is called the puzzle of closed-end funds discounts. Though there are a lot of scholars explain the puzzle with the opinions of"standard economics"or the opinions of"behavioral economics", there is still no an accepted explanation by the both sides. This paper tries to take an analysis on the character and effect factors of discount of closed-end funds in China emerging security investment funds market. The structure of this paper as follows:The first chapter mainly introduces and reviews both foreign and domestic scholars'studies on"puzzle of closed-end funds".The second chapter mainly takes an empirical study on the characteristics of the China closed-end funds.The third chapter mainly takes empirical studies on the effect factors of the China closed-end funds.The last chapter of the paper comes to a conclusion that the"behavioral explanation"is better than the"standard explanation"on China closed-end funds discount.This paper also brings forward some suggestion for government and individual investor on closed-end funds'management and investment.