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Do active Chinese equity fund managers produce positive alpha? A comprehensive performance evaluation

Tingting Cheng et al.

Journal of International Financial Markets, Institutions and Money2026https://doi.org/10.1016/j.intfin.2026.102312article
AJG 3ABDC A
Weight
0.50

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.

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https://doi.org/https://doi.org/10.1016/j.intfin.2026.102312

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@article{tingting2026,
  title        = {{Do active Chinese equity fund managers produce positive alpha? A comprehensive performance evaluation}},
  author       = {Tingting Cheng et al.},
  journal      = {Journal of International Financial Markets, Institutions and Money},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1016/j.intfin.2026.102312},
}

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Do active Chinese equity fund managers produce positive alpha? A comprehensive performance evaluation

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Evidence weight

0.50

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F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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