The Empirical Study Of The Nonlinear Relationship Of Size And Performance Of The Open-end Equity Funds

The Zhengtai Fund and the Kaiyuan Fund listed on the Shanghai StockExchange and Shenzhen Stock Exchange since1998,which means the arrival of thenew era of fund. Followed the China Securities regulatory Bureau promoting thedevelopment of fund market furtherly, the authorities proposed to develop theagencies-investor strategy extraordinarily in2001, however, due to the bear marketimpact in later years. Until2005, the Fund was able to develop rapidly. According tothe reliable statistics,up to the June2012,there are969open-end funds in Chinatotally, and the large funds which the scale surpass billions accounted for a largeproportion of the total funds,especially the Harvest CSI300even reach at41783million. The Securities Investment Fund can be described as the new product,the15-years fund development course not only enriched our capital market,but alsoreduced the risks of security market,so it is more a type of finance system innovationthan a type of financial product innovation.Even though the share of the fund productin our security market was gradually large,but it also bring us more problem.Becausethere are more and more funds in the security market.it will cause the Flock Effectwhen the pubic choose the fund product,and it will inevitably affect the investmentacivities more or less.With the development of the fund scale, whether the fundperformance which the investors concerned ascends or not,whether it reduces thefund performance.It furtherly initiate the investors’ concerns and ponder on theOpen-end fund.In view of the above-described circumstances,According theexperience from the foreign fund market,combined with the actual situation ofChina,The article uses the semi-annual data of the43stock open-end funds forsample from December2005to June2012,respectively measuers the fund size by thenet fund output and the fund performance by the excess rate of return,the articleintroduce the Panel Threshold Model to do empirical analysis of Chinese open-endequity funds,using the autonomy sampling method and the significant test to conductthe threshold of china’ fund scale,and verifies there are the existence of a non-linearrelationship between the Fund size and investment income,it’s that there is a mostappropriate scale,concluding the most appropriate scale is about1.63billion yuan,which put forward a number of policy recommendations based on the actual situation.The innovation of this paper is that the introduction of a threshold panel model toanalyze the relationship between fund size and performance, combined theoreticaland practical move, making us been further judgment and understanding of the stockfund market in China.