IDEAS home Printed from https://ideas.repec.org/a/mes/chinec/v47y2014i1p5-37.html
   My bibliography  Save this article

Mutual Fund Investment Strategies and Preferences

Author

Listed:
  • Jingjing Yang
  • Jing Chi
  • Martin Young

Abstract

This article classifies Chinese mutual funds based on their past investment behavior, using factor and cluster analyses. The empirical results show that the majority of Chinese mutual funds are quasi-indexers (58.58%) which follow a buy-and-hold investment strategy; next are transient mutual funds (31.27%) and dedicated mutual funds (3.38). The results also show that mutual funds generally hold shares of large firms that offer low market risk, low liquidity, and good operating and stock performance. The preferences of quasi-index funds dominate the results. Transient mutual funds focus on good operating performance and growth opportunities. Dedicated funds invest heavily in small, highly liquid listed firms. All types of mutual funds in China prefer to hold state-controlled listed firms rather than privately controlled ones.

Suggested Citation

  • Jingjing Yang & Jing Chi & Martin Young, 2014. "Mutual Fund Investment Strategies and Preferences," Chinese Economy, Taylor & Francis Journals, vol. 47(1), pages 5-37, January.
    • Handle: RePEc:mes:chinec:v:47:y:2014:i:1:p:5-37
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W024JX60351G74R8
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiang, Fuxiu & Jiang, Zhan & Kim, Kenneth A., 2020. "Capital markets, financial institutions, and corporate finance in China," Journal of Corporate Finance, Elsevier, vol. 63(C).
    2. Shan Xu & Lili Guo, 2023. "Financialization and Corporate Performance in China: Promotion or Inhibition?," Abacus, Accounting Foundation, University of Sydney, vol. 59(3), pages 776-817, September.
    3. Wang, Yang & Ashton, John K. & Jaafar, Aziz, 2019. "Does mutual fund investment influence accounting fraud?," Emerging Markets Review, Elsevier, vol. 38(C), pages 142-158.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:47:y:2014:i:1:p:5-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MCES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.