Research on the coordinated development of open-end funds - Doctoral Library of Industrial Economics

Author: Sheng Junfeng
Publisher:
Publish Date: 2006-02-01
Features: In recent years, the development of open-end funds in China has been booming. However, many issues still constrain the healthy growth of open-end funds, making it necessary to study the conditions and environment for their development. As a form of institutional and financial innovation, open-end funds are developed within specific backgrounds and environments, and their coordination with related systems is the prerequisite for their healthy development. The theoretical analysis of open-end fund systems and institutional innovation using pluralistic institutional theory indicates that the institutional change of open-end funds exhibits characteristics of "synchronic correlation" and "diachronic correlation," with a "dynamic evolution mechanism" existing between open-end funds and related systems. The emergence of open-end funds is the result of a shift from a shared belief system of traditional investment methods to a new shared belief system of investment methods. Under market failure conditions, open-end funds are a derivative of financial intermediation. As intermediaries, open-end funds not only compete with the market but are also "symbiotic" with it. Open-end funds, characterized by pluralistic investment behaviors, have an inherent theoretical connection with the financial market. Their impact on the securities market is not necessarily stabilizing, and this effect is conditional. The development of open-end funds in the United States is primarily due to their coordinated institutional environment, such as a mature financial market, sufficient investment capital supply, and a sound legal system. Empirical analysis of the coordination between open-end funds and the securities market in China, using indicators such as specific indices of the Shanghai and Shenzhen securities markets and fund index return rates, as well as the weekly returns of all open-end funds during specific periods, reveals that their coordination level is generally unsatisfactory. Only by clarifying the market process nature of open-end fund development and implementing supporting measures such as promoting the maturity of the securities market, improving market efficiency, refining the legal system, broadening the supply channels for fund capital, enhancing fund governance structures, and regulating the development of private funds, can the market environment for open-end fund development be optimized to continuously promote their coordinated and healthy growth.