Performance Evaluation Of Closed - End Fund In China

In the twentieth century, the international financial structure shifted from the dominanceof commercial banks to a more diverse financial patterm including investment funds andinsurance company, among which security investment fund as a new type of investment tooland financial intermediary is becoming a more and more important role in the securitiesmarket for its merits of professional asset management, portfolio investment and riskdiversification.Securities investment fund started comparatively late in China but have made fastprogress in the last decade. The scale of securities investment funds was 8 billion, 75 fundsexisted in the market by the end of 1997, while reached 500 billion by the end of 2005.Especially in the year 2004 and 2005, under the condition of deppression in stock market, thefund industry came to its golden period and its scale grew substantially. However, comparedwith the successful operation of foreign funds, China's security investment funds arerelatively new and are characterized by small scale, insufficient practical experiences, andlack of a complete set of scientific evaluation criteria, rendering it necessary and urgent tocarry out research on this issue.By choosing closed-ended funds as sample, this paper focused on the evaluation of thesecurity investment funds, introduces the mature fund evaluation indices model from thewestern securities market, proceeds to analyze the operational effeciency of China's securityinvestment funds empirically. Additionally, this paper puts forwards some suggestions for thepurpose of regulating these funds and improving their future performances.The findings of this paper suggest that security investment funds in China show up abetter performance than average market players, thanks to the systematic risk rooted in market,but not to the fund managers' investment ability.