The Empirical Research On The Influential Factors Of Chinese Open

In recent years, the development of open-end fund in China is very fast with the improvement of China’s stock market. However, the number of China’s open-end fund has reached 1793 by January 31, 2015, which accounts for 92.71% of all funds, far more than that of closed-end funds. Such an astonishing development speed in just fifteen years! But the rules and regulations of the securities investment fund and its operation mode is still lagging behind, so the understanding and prevention of the liquidity risk of China’s open-end funds must be caused by insufficient attention. Thus, it has a certain theoretical and practical significance to study the characteristics and causes of Chinese open-end fund liquidity risk, to identify and distinguish its influential factors and the associated extent, and further to make some suggestions to the management and control of Chinese open-end fund liquidity risk.In this paper, after reviewing the related literature at home and abroad, we first conduct a qualitative analysis on the causes of Chinese open-end fund liquidity risk, then we select 51 representative equity funds and 18 representative bond funds on the market as open-end funds samples, gather the quarterly data from 2006 to 2014, and do the empirical research respectively. The empirical results show that the impacts of the influential factors such as the level of financial development, the stock market, the fund size, unit net worth, rate of return, dividends on the stock funds and bond funds have commonality and also have differences. In particular, for China’s open-end fund market, the level of financial development has a significant positive correlation with changes in the fund size change rate, either for the stock funds or bond funds, namely, the higher the level of financial development, the greater the huge redemption pressure. Finally, we put forward some relevant suggestions from the government regulatory level, the fund management company level and the investor level, in the hope of reducing the redemption pressure, thereby reducing the liquidity risk of Chinese open-end fund in practical operating level.