Investment Rating - The report assigns an "Overweight" rating to the industry, indicating a positive outlook for investment opportunities [5]. Core Insights - The new regulation, titled "Guidelines for Performance Comparison Benchmarks of Publicly Raised Securities Investment Funds," aims to enhance the quality of public fund development by strengthening benchmark constraints and establishing a clear implementation timeline and transition period [2][3][5]. - The formal version of the regulation has further reinforced external constraints compared to the draft, optimizing specific provisions and clarifying the timeline for implementation, which is set to begin on March 1 [5]. - The regulation addresses previous shortcomings in the industry, such as the lack of specialized and systematic regulations, inadequate internal control mechanisms, and significant deviations of some actively managed equity funds from benchmarks, which have affected investor confidence [5]. Summary by Sections Regulatory Changes - The new regulation emphasizes the importance of performance comparison benchmarks, ensuring they align with the core elements and investment styles specified in fund contracts, and prohibits arbitrary changes once established [5]. - It introduces enhanced external constraints, including the requirement for custodians to ensure compliance with benchmark disclosures and incorporating benchmark usage into the classification evaluation of fund sales institutions [5]. Investment Recommendations - The report suggests that the brokerage sector will benefit from the resonance of capital inflows and performance elasticity, with a favorable outlook for high-quality leading firms and those with wealth management characteristics [5]. - It is anticipated that the influx of medium to long-term capital will stimulate retail participation, further driving the performance of brokerages, which are expected to gradually release their earnings [5]. - The report recommends increasing holdings in quality leading brokerages that will benefit from the influx of new capital, specifically highlighting Huatai Securities and CICC [5][6].