Closed-End Fund Discount Phenomenon Explain In China

This paper review the history development and the unique status of China's closed-end fund market briefly, According to the actual situation of China's securities market, we selected the data of the 17 closed-end funds from 2001 to 2009, and described their time processing characteristics and the demographic characteristics of the process, citing research result from the domestic scholars and foreign about closed-end fund discount, from the investor sentiment, the traditional factors and specific factors in China's securities market in terms of closed-end fund, we analysis the impact factor on the closed-end fund discount trading from the theoretical and empirical, and use multivariate stepwise regression to analyse possibly explanatory variables. The results of the analysis show that the survival time, Concentration of the stock investment, time factor and dividends are major factors affecting the closed-end fund discount; we verify china's closed-end funds stock market by using three assumption of LST mode. It show the market in our country has investor sentiment, The additional risk of the random fluctuations in investor sentiment in China has increased the volatility of the discount, further analysis, we know china's stock market are still under development Initially. The immature market triggered the "herd behavior" ,which assimilate the rational investors and noise traders, and enlarge the changes in investor sentiment increase the price fluctuations of the closed-end funds, which impel closed-end fund discount or premium become bigger, it lead to closed-end fund discount is greater volatility, more deeply than the discount foreign market...