An empirical study of the impact of stock market volatility on fund size

DOI

10.2991/978-94-6463-344-3_77How to use a DOI?

Keywords

stock market volatility; fund size; VAR model

Abstract

Compared with mature foreign markets, China’s securities market is more volatile and fund size has grown very rapidly in recent years, so does stock market volatility affect fund size? Based on this, this paper analyzes the impact of China’s stock market volatility on fund size by constructing a VAR model and using empirical analysis, and draws the following conclusions: 1. Stock market volatility is an influencing factor on fund size, and stock market volatility will affect investors’ fund returns and investor sentiment, thus affecting their purchase and redemption behavior and causing changes in fund size; 2. The impact of stock market volatility on fund size There is a lagged effect, with an impact time of about six months. Stock market fluctuations have a positive impact on fund size changes, and the impact tends to last for a certain period of time. Based on the above findings this paper proposes the following policy recommendations: first, the government should establish a sound social security system and introduce preferential policies such as reasonable pension and education savings plans to guide family funds for fund investment and improve the current situation of institutionalized fund holdings; second, the stock market trading system should be further improved and fund investment behavior regulated, supervision and punishment for violations should be strengthened to prevent abnormal stock market price movements. This will help optimize China’s fund management and promote the development of China’s securities market.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Hao Zhang
PY  - 2024
DA  - 2024/01/10
TI  - An empirical study of the impact of stock market volatility on fund size
BT  - Proceedings of the 2023 2nd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2023)
PB  - Atlantis Press
SP  - 709
EP  - 716
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-344-3_77
DO  - 10.2991/978-94-6463-344-3_77
ID  - Zhang2024
ER  -