Mutual fund investing in the Chinese A-share market

Yeguang Chi and Xiao Qiao

Chapter 2 in Handbook of Banking and Finance in Emerging Markets, 2022, pp 32-50 from Edward Elgar Publishing

Abstract: This chapter investigates whether stock mutual funds in the Chinese A-share market provide economic value for investors. Stock mutual funds in China experienced a steady growth from 2006 to 2019 - the number of funds multiplied by 17-fold. These funds outperform the CSI300 Index on average, and fund returns show economically large differences in the cross-section. Fund performance exhibits persistence: the top-performing funds in a given month are also likely to be the top funds in the following month. Portfolios formed using the top-performing funds improve the risk-return tradeoff compared to investing in the aggregate market, without increased volatility or tail risk. Our results indicate stock mutual funds provide attractive investment opportunities in the A-share market.

Keywords: Development Studies; Economics and Finance (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781800880900/9781800880900.00008.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:20452_2

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().