A Comparison Analysis on the Performance of Closed-end Funds That Open-end

The conversion of closed-end funds to open-end status which started in 2006 was an important event of Chinese fund market.The paper compares pre-conversion and post-eonversion performance of the funds,with earning,risk and risk-adjusted performance measures.The results show that there is a different investment styles between open-end funds and closed-end funds,but considering earning and risk,none of them has any advantage over their counterparts;performance was not improved after conversion.What is more important is the stabilizing effect on stock market of closed-end funds is more transparent when the market index is going down.There is a necessity of closed-end funds.