Do active Chinese equity fund managers produce positive alpha? A comprehensive performance evaluation
Abstract
This paper evaluates the performance of mutual funds in China with the bootstrap-based false discovery rate (FDR) method based on a battery of factor models. We find robust evidence of a significantly higher proportion of skilled funds in China (19.25 percent) than is found for developed countries in the existing literature. We also examine the heterogeneity across sub-samples of different fund styles and find positive alphas for 27 percent of growth funds, 14.56 percent for balance-oriented funds and 11.6 percent for value-oriented funds. We complement the FDR accuracy assessment literature by validating the applicability of the FDR method through elaborate simulations.
Fields of Study & Subjects
Financial Markets and Investment Strategies
Corporate Finance and Governance
Auditing
Earnings Management
Governance
Publication details
- Journal / source
- Journal of International Financial Markets Institutions and Money
- Publisher
- Elsevier BV
- Volume
- 109
- Pages
- 102312–102312
- Publication date
- 11 March 2026
- Language
- EN