The Influential Factors Of The Closed-End Funds Discount And The Studyof Investment Opportunities

The trading prices of closed-end fund shares tend to deviate from its net asset value, it is less than the net asset value in most of the period. This phenomenon was found in the study of the U. S. financial markets, it was known as closed-end fund puzzle. Since it was found, theoretical and practical have been plagued by this problem, circles of theories and hypotheses have been put forward.Since1992, the first closed-end funds going public in China, quite a few funds have matured and some of them converted to open-end fund. Closed-end funds also saw the same problem in Chinese market. This article will have23closed-end fund as an example, which still exist in the Shanghai and shenzhen two city stock exchange. This article elaborated some dynamic features of the closed-end funds discount in our country financial market, it explored the causes using quantitative analysis method, and to found out which the main factors are affecting fund discount through identifing the closed-end fund market in our country. In addition, in the last issue, it is a good choise to build assets portfolio according the closed-end fund discount rate or hold expires by selecting the appropriate closed-end funds. The second, This article create a closed-end fund investment opportunities for investors. Finally, it provide some advices to the investors, custody and regulators in closed-end funds trading.Specifically, we draw the following conclusions:(1) in our country, the discount of closed-end fund generally conformed to the abroad study of closed-end fund pricing, the different fund discount rate are different at the same time, even the same fund, its discount rate are also different in different time;(2) the closed-end fund shows a positive correlation tendency at the different movements, the strong homogeneity of closed-end funds discount rate between the individual difference is not very big. As a result, the fund value is relative with the fund’s net asset value, and this relative is likely to fund certain prediction effect for the future price movements;(3) There are many influence factors for the discount of closed-end fund in our financial market, but the correlations of those are not very strong. In some sense, the investor sentiment may be a very important factor affectting the discount of closed-end fund.