Abstract: This paper deals with an empirical research on the tournament in China's fund in dustry and demonstrates that performance ranking does provide some overall impli cit incentives for fund managers, which results in the fact that "losers" wil l face more chances of risks in ratio adjustment, specifically, the "adjustme nt ratio" for the interim losers will be greater than that for the interim winn ers. The investigation further shows that this trend is more likely to hold for small and new funds than for those large and more established ones, and it's mo re evident in open-ended fund than in close-ended fund management.