The Empirical Study Of China's Closed-end Fund Discount

According to The Efficient Markets Hypothesis, investors of closed-end funds can't earn excess risk-adjusted returns which accord with CAPM. The diversity of profit in different closed-end funds is that their risk preferences are different. Consequently, the fundamental value of closed-end fund should be equal to the net asset value (NAV) per share. There is no phenomenon of deviations between closed-end funds and their NAV on long-term. However, a great deal of empirical research reveals that deviations between the fundamental value and NAV exist in financial markets. The standard financial theory can't satisfactorily explain this phenomenon, therefore, we call this phenomenon closed-end fund puzzles. But behavioral financial theory' explanation is satisfied compare to standard financial theory's.This article first reviewed the closed-end fund research results and our country closed-end fund development history, next described the characteristic which the fund gives a discount, used to affect the investor mood factor once more which our country closed-end fund gave a discount to give a discount the phenomenon to our country stock market closed-end fund to establish the correlation model to conduct the real diagnosis research. And obtained the investor mood affects important attribute this conclusion which our country closed-end fund gives a discount.Finally, how to promote our closed-end fund development, the standard our country negotiable securities investment fund behavior and so on to put forward the proposal.