Core Viewpoint - The launch of the new floating rate fund, Huaxia Rui Xiang Mixed Fund, represents a significant shift in China's public fund industry from a "scale-driven" model to a "return-oriented" approach, aligning with the China Securities Regulatory Commission's initiative for high-quality development in public funds [1] Fund Overview - Fund Name: Huaxia Rui Xiang Mixed Fund - Fund Codes: A Class 024443, C Class 024444 - Fund Manager: Huaxia Fund Management Co., Ltd. - Custodian: China Construction Bank Co., Ltd. - Fund Type: Mixed Fund - Trading Currency: RMB - Operation Mode: Ordinary Open-end - Open Frequency: Every open day - Fund Manager: Wang Junzheng, with a securities industry experience since July 1, 2008 [2] Fee Structure - The fund's management fee consists of fixed management fees, contingent management fees, and excess management fees, which are based on the holding duration and annualized return of each fund share, adopting a tiered collection method [3] - The fee structure encourages fund managers to pursue excess returns while alleviating the burden on investors during poor performance periods [4] Investment Strategy - Wang Junzheng, the fund manager, focuses on large-cap growth stocks and employs a combination of quantitative and qualitative investment methods, favoring companies with high and stable long-term ROE [8] - The fund targets sectors such as finance, real estate, consumer healthcare, and technology manufacturing, with a positive outlook on emerging industries like automotive, innovative pharmaceuticals, and AI applications [8] Market Reception - Multiple sales channels have positively evaluated the product design, highlighting its advantages and aligning it with current investor demand for stable returns [9] - The innovative fee structure is seen as beneficial for investors, promoting a long-term investment approach and enhancing the professional capabilities of fund managers [9] - The issuance of floating rate funds like Huaxia Rui Xiang Mixed Fund is viewed as a significant innovation in the public fund industry's fee model, contributing to a virtuous cycle of value creation and improved investor experience in China's capital market [9]

Core Viewpoint - The launch of the first floating fee rate fund, Huaxia Rui Xiang Mixed Fund, represents a significant step in the transformation of China's public fund industry from a "scale-driven" model to a "return-oriented" approach, responding to the China Securities Regulatory Commission's initiative for high-quality development in public funds [1][3]. Fund Structure and Fee Mechanism - The Huaxia Rui Xiang Mixed Fund features a fee structure that includes fixed management fees, contingent management fees, and excess management fees, which are determined by the holding period and annualized return of each fund share [3]. - The management fee is set at 1.20% for holdings of less than one year, 1.50% if the annualized return exceeds the benchmark by more than 6 percentage points with positive returns for holdings of one year or more, and 0.60% if the return lags the benchmark by more than 3 percentage points [3]. - This "asymmetric dual incentive" mechanism encourages fund managers to pursue excess returns while alleviating the burden on investors during poor performance, achieving a "shared return, shared risk" model [3]. Market Outlook and Investment Opportunities - The fund manager, Wang Junzheng, emphasizes the solid foundation for asset revaluation in China, particularly with AI at its core, and notes that quality companies are showing greater growth momentum in sectors like automotive, innovative pharmaceuticals, and emerging technologies [4]. - The market has seen a significant recovery in confidence since September 24, 2024, with a focus on long-term investment opportunities in sectors with reasonable valuations and potential for reversal [4]. Industry Response and Future Developments - Multiple sales channels recognize the advantages of the new floating fee rate fund, highlighting its alignment with investor demand for stable returns and the emphasis on long-term investment and excess returns [5]. - Industry insiders view the launch of the Huaxia Rui Xiang Mixed Fund as a reflection of Huaxia Fund's commitment to high-quality development and a significant innovation in the fee structure of public funds, marking a return to investor-centric practices [6]. - The implementation of the action plan is expected to lead to more innovative products, enhancing investor choices and fostering a positive cycle in the capital market [6].