Core Viewpoint - The recent draft regulations from the Asset Management Association of China aim to standardize the sales behavior of publicly offered securities investment funds, focusing on protecting investors' rights and preventing misleading sales practices [1][11]. Group 1: Fund Sales Regulations - The draft specifies that fund managers and sales institutions must prioritize the best interests of investors and adhere to principles of honesty and diligence [1]. - Fund performance must be presented objectively, with specific requirements such as showing performance periods longer than six months and avoiding annualized returns for periods shorter than one year [2]. - Fund performance rankings should be based on publicly available data from fund evaluation agencies for periods of three years or more, including necessary disclosures [2]. Group 2: Marketing and Communication Guidelines - Fund managers and sales institutions are prohibited from using exaggerated language or misleading terms in their marketing materials, particularly regarding fund size and growth [3]. - The draft emphasizes that promotional content related to fund managers should focus on the research team's capabilities rather than individual achievements [3]. - When promoting index funds, the focus should be on their utility and asset allocation functions, ensuring compliance with performance display regulations [3]. Group 3: Live Streaming Regulations - The draft outlines strict compliance requirements for live streaming fund promotions, including the necessity for qualified personnel and agreements with streaming platforms [5]. - Live streaming personnel must have appropriate qualifications and adhere to advertising laws, while platforms must not engage in fund sales without proper authorization [6]. - Measures must be taken to prevent the alteration and unauthorized dissemination of live streaming materials [6]. Group 4: Disclosure of Fees and Costs - Fund managers and sales institutions are required to ensure that investors can access and understand fund product summaries, including various fees associated with fund transactions [8][9]. - Different share classes of funds must have their fee structures clearly disclosed to investors [8]. Group 5: Performance Assessment Optimization - The draft proposes a systematic optimization of performance assessment mechanisms for fund sales, emphasizing long-term performance over short-term sales tactics [10]. - Performance indicators should include investor profitability and long-term investment outcomes, with a minimum assessment period of one year for sales activities [10]. - The focus should shift from sales revenue and scale to the retention of equity fund holdings and investor outcomes [10].

Core Viewpoint - The recent draft of the "Regulations on the Sales Behavior of Publicly Raised Securities Investment Funds" aims to strengthen investor protection and standardize industry practices, addressing misleading sales activities and ensuring the best interests of investors are prioritized [1][11]. Group 1: Fund Promotion and Marketing - Fund managers and sales institutions must objectively and comprehensively present fund performance, ensuring that performance periods exceed six months and avoiding annualized displays for periods under one year [2][3]. - Fund performance rankings should be based on publicly available data from fund evaluation agencies for periods of three years or more, including necessary details such as agency name and evaluation date [2]. - The use of terms like "positive return" or "probability of positive return" is prohibited to prevent misleading investors about risks [2]. Group 2: Sales Practices and Accountability - Fund managers and sales institutions are required to avoid exaggerated claims and misleading language in their promotions, particularly regarding fund size and growth [3]. - A mechanism for accountability will be established for short-term sales behaviors, such as inducing investors to frequently redeem or subscribe to funds [1][10]. Group 3: Live Streaming Regulations - Fund managers and sales institutions must ensure compliance in live streaming activities, including signing agreements with platforms and ensuring that only qualified personnel conduct fund-related discussions [5][7]. - Live streaming platforms must disable tipping features, and all promotional content must adhere to relevant legal standards [6][7]. Group 4: Disclosure of Fees and Information - Fund managers and sales institutions must provide clear and comprehensive information about various fees associated with fund purchases, ensuring investors have adequate time to review this information [8][9]. - Different share classes must have their fee structures disclosed, and sales service fees must be clearly defined [9]. Group 5: Performance Assessment Optimization - The performance assessment mechanisms for sales activities should align with long-term objectives, focusing on investor outcomes rather than short-term sales metrics [10]. - Key performance indicators should include investor profitability and retention, with a minimum assessment period of one year for sales activities and three years for investor outcomes [10].