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Academic Journal of Business & Management, 2022, 4(15); doi: 10.25236/AJBM.2022.041508.

Research on the Causes and Economic Consequences of Factor Crowding in China's Capital Market ——Take the Phenomenon of Grouping of Public Funds as an Example


Fafu Xu

Corresponding Author:
Fafu Xu

Zhejiang University of Finance & Economics, Hangzhou, Zhejiang, 310018, China


The factors driving stock returns in investment activities have been a hot topic of research in modern finance. Previous researchers have proposed several multi-factor models for the drivers of stock returns in investment activities to improve the decision models of specific influencing factors in investment decisions. Based on research on public funds' grouping behavior in investment decision-making, this paper analyzes a series of decision behaviors of fund managers in the context of factor strategy crowding. Therefore, we identify the specific influences and behavioral contexts in which fund managers make investment decisions and provide a specific analysis of fund managers' investment decision opinions under factor strategy crowding, illustrating the economic mechanisms involved.


Stock returns; Mutual funds; Factor crowding; Factor volatility; Pair correlation

Cite This Paper

Fafu Xu. Research on the Causes and Economic Consequences of Factor Crowding in China's Capital Market ——Take the Phenomenon of Grouping of Public Funds as an Example. Academic Journal of Business & Management (2022) Vol. 4, Issue 15: 47-52. https://doi.org/10.25236/AJBM.2022.041508.


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