1. Empirical Evaluation of Liquidity Redemption Risk of Open-end Funds in China

Open-end fund is the product of dynamic equilibrium to meet investors' liquidity demand and demand for a certain rate of return. At present, domestic open-end funds are all burden-based funds, that is, redemption fees are charged, but this does not mean that fund managers have high management ability. From the perspective of investor group structure, due to the immature development of China's securities market, inefficient operation of capital market and money market, high transaction cost, strong speculative awareness of investors, and emphasis on short-term trading, the concept of long-term rational investment has not yet been established, that is to say, the proportion of investors with low liquidity demand is small, while the proportion of investors with high liquidity demand is large. Good performance is the key factor of net capital inflow, and it also affects the scale of open-end funds.

2. The minimum redemption rate and liquidity risk prevention of open-end funds.

By setting the redemption fee and determining the reasonable redemption rate, the burden fund can exclude highly liquid investors when the fund is established. Further analysis shows that open-end funds can protect funds from liquidity shocks by setting appropriate redemption fees, such as screening investors with high liquidity needs through front-end fees and back-end fees. However, it is difficult for open-end funds to be completely protected from liquidity shocks by only one redemption fee. At best, it will only increase the transaction cost of investors with high liquidity demand, that is, short-term investors, and urge investors to extend the average holding period of investment funds, thus preventing liquidity redemption risks.

In view of the differences in investors' liquidity needs, investment ideas and deadlines, investors with higher liquidity needs can be excluded by setting a higher redemption fee and other burdens, while mature rational investors with lower liquidity needs can be satisfied by higher investment returns, which can reduce liquidity risks to a certain extent. The rate structure of open-end funds is generally restricted by investors' preferences. In order to prevent liquidity redemption risks and improve the competitiveness of funds, more flexible means can be adopted in the design of redemption fees, and different redemption fees can be charged according to investors' liquidity demand preferences and the duration of holding funds. At present, China's open-end funds have taken measures in this regard, such as the dynamic balance of rich countries, the steady growth of E Fund, the new blue-chip financing, and the Southern Baoyuan bond fund, which are more flexible, encourage investors to hold funds for a long time, and reduce the redemption pressure and liquidity risk faced by funds to some extent.

Strategies to deal with fund liquidity risk

The liquidity risk management of open-end funds should adopt different management methods according to the development level of the securities market, the composition of investors and their investment ideas. The factors affecting the liquidity risk of open-end funds are complex, and the liquidity risk management is mainly strengthened in the following aspects.

1. theoretical model shows that the marginal ability of fund managers is decreasing relative to the number of investors with low liquidity demand and the risk of investors with high liquidity demand; The minimum redemption fee is positively related to the risk of investors with high liquidity demand and the relative scarcity of investors with low liquidity demand.

2. At present, China does not have the conditions to launch free funds, but we can design and develop multi-level open-end fund products and their rate structure according to the income level, investment preferences and habits of domestic investors. Of course, the actual rate structure can be designed according to the probability distribution and market conditions of different income groups. Set a higher rate for holders with high liquidity demand, encourage them to hold for a long time, change the current subscription and redemption fees into redemption fees when conditions are ripe, and appropriately increase the redemption rate.

3. Fund managers should strengthen the marketing management of funds, explain the investment concept and mode of funds to investors, urge investors with high liquidity demand to transform into investors with low liquidity demand, establish a long-term investment concept, let investors choose carefully when buying and redeeming funds, reduce the pressure of fund redemption, prevent liquidity risks, and reasonably determine the scale of open-end funds. In addition, different types of funds can be exchanged in the same fund, so that the funds that investors want to withdraw can stay in the fund management company, reducing the pressure of cash payment and liquidity risk. It is suggested to strengthen the information disclosure requirements of open-end funds in terms of asset liquidity in order to correctly guide fund investors.

4. At present, the level of fund management in China is not high, and the ability of fund managers is limited. Therefore, we should learn from the experience of liquidity management in mature markets, formulate relevant laws and regulations to effectively manage the liquidity risk of open-end funds, and choose appropriate liquidity risk management strategies (asset liquidity strategy, borrowing liquidity strategy, balance assets and liabilities liquidity strategy, etc.). ). Reform the fund manager's remuneration extraction method, reduce the liquidity cost and improve the fund operation ability.