The performance and persistency of Chinese mutual funds

Abstract

Chinese mutual fund industry has been developing very fast in the past five years. It is becoming increasingly important to understand the performance patterns of the players in this industry for both academic reasons and the purpose of investment. In this study, I investigate the performance of Chinese open-end equity mutual funds for the period of 2004-2007. The results show that during this period, these equity mutual funds outperform the market. However, their performances are not persistent and there is evidence of negative timing ability.