An Empirical Study of China's Structured Mutual Funds
China's structured mutual funds are complicated financial instruments and quite unique as compared with those in United States. Most of them are divided into two tranches, with the low-risk A tranche mainly invested in fixed-income products and the B tranche tracking equity indices made up of companies that fit the reigning theme in the market. Quickly since their launch in 2007, China's structured funds became star performers in the bull market, but they also took the biggest hit when the market enters into a downward spiral.
The major purpose of this project is to (1) understand the design and mechanism of the structured funds in China; (2) to study its pricing and valuation on both the primary and secondary markets; and (3) to study the commonality and differences of the structured mutual fund products in China versus those in United States.
1. Basic literature review and collect some institutional background information;
2. Collect the historical pricing information for selective representative structure funds;
3. Conduct preliminary empirical analysis under the supervisor's guidance.
The ideal candiates should have:
1. Trainings in undergratuate investment analysis or equivalent courses;
2. Good analytical, communication and interpersonal skills;
3. Strong self-motivation and willingness to learn;
4. Proficiency in English and Chinese;
5. Good knowledge of application software (Excel) and statistical software (R or Python or SAS or Stata) is a plus.
Applicant's Learning Objectives:
1. Develop a deep understanding of the design, operation and mechanism of an important new mutural fund product -- the structure funds.
2. Gain valuable experience in empirical asset pricing analysis and working with programs such as Stata, R or Excel.