The Research On The Liquidity Risk Of The Open-ended Fund In China

The open-ended fund is an important investment tool in the financial market. Compared with close-ended fund, the greatest feature of it is that uncertainty of its scale and investors can purchase and redeem fund shares constantly on the base of their demand, which greatly encourage investors and hereby welcomed by them. However, the open operation model of it and uncertainty of redemption make the fund manager have to face an inevitable difficult all over the world, which is the liquidity risk of open-ended fund. Especially, considering the especially financial market of China, such as imperfection of capital market, immaturity of investment mind, the liquidity risk of open-ended fund is more obvious in China.The paper takes the current situation of open-ended in China as the background, regards "liquidity risk of open-ended fund" as the research object, discusses the level of liquidity risk of open-ended fund from the angle of funds management company. Combining with the problem of liquidity risk management of open-ended fund at present, puts forward some measures of improving managerial abilities of open-ended fund's liquidity risks.Firstly, the paper introduces the connotation of open-ended fund, and analyzes qualitatively its origin and influence factors, then analyzes briefly the influence of open-ended fund's liquidity risks to the securities market, which have laid the foundation for the later research. Secondly, the paper analyzes particularity of liquidity risk of open-ended fund on the basis of its actual situation and its redemption quantitatively in order to inspect its liquidity pressure in China, and then analyzes the current problem about the liquidity risk management of the open-ended fund in China. Thirdly, the paper introduces the model of liquidity risk (L - VaR) briefly, and conducts empirical research with this model to measure the level of liquidity risk of open-ended fund in China, then carries on the contrast analysis about the liquidity risk level of the fund and market, the open-ended funds and closed-ended funds, different funds in the same fund management companies and different investment styles of fund. Finally, the paper constructs the liquidity risk management frame of the open-ended fund, combining with the empirical research findings and the current problem about the liquidity risk management of the open-ended fund in China, puts forward some countermeasure about the liquidity risk management of the open-ended fund form macroscopic and microscopic perspective, which can promote the level of liquidity risk management of the open-ended fund in China.