SIGNATURE WORK
CONFERENCE & EXHIBITION 2022

I examine whether style drifts contribute to the open-equity fund in China. Such effect is specially examined under the influence of the COVID-19 pandemic and with distinctions of funds under the Shanghai Stock Exchange and the Shenzhen Stock Exchange. I find that style drifts have a positive effect on the growth rate of the net worth of open-end equity funds. The effect has been more prominent since the COVID-19 pandemic. The effect is also more significant on funds from the Shanghai Stock Exchange compared with the Shenzhen Stock Exchange. Style drifts can be a powerful tool to improve fund performances, especially in the unsteady economy caused by the COVID-19 pandemic.