A Study on Characteristics of China Open-End Fund Flow Changes Based on Quantile Regression

Free purchase and redemption to open-end fund of the investors result in the variety of open-end fund flows. Based on quantile regression model, the paper investigates the mechanism on the changing of open-end fund flows and the factors that cause it. With the data set of 97 open-end funds for three years (2005-2007) in China open-end fund market, we find that the whole return trend of stock market and the fund division are the main factors which affect the fund flows. But other factors appear to be more important to those funds which have high ratio of fund flows, in which investors\´ "short-term behavior" and "brand effect" also exist.