Core Viewpoint - The recent draft of the "Public Fund Performance Comparison Benchmark Element Library Operation Explanation" has been distributed, establishing a benchmark library divided into two categories, aimed at enhancing the comparability of fund performance and encouraging standardized selection and use of indices by fund managers [1][2]. Group 1: Benchmark Library Structure - The benchmark library consists of two categories: Category One includes 69 core indices, while Category Two includes 72 indices, totaling 141 indices that cover mainstream investment targets in A-shares and Hong Kong stocks [1][2]. - Category One focuses on highly representative and widely recognized indices, while Category Two aims to balance innovation and differentiation, including indices with significant usage frequency and market capitalization [1][2]. Group 2: Inclusion Criteria - The inclusion criteria for Category Two indices require that single constituent security weight does not exceed 20% for broad-based indices, and for non-broad-based indices, there must be at least 30 constituent securities with specific weight limitations [5]. - For Category One indices, they must meet the standards of Category Two and have an average daily free float market capitalization of at least 10,000 billion yuan over the past year, along with other relevant standards [5]. Group 3: Dynamic Adjustment Mechanism - The benchmark library is not static; it will undergo quarterly evaluations for the entry and exit of benchmark elements and semi-annual assessments for adjustments between the two categories [9]. - Elements in Category Two that meet the standards for Category One can be moved up, while those in Category One that no longer meet the criteria can be moved down, based on expert committee evaluations [9].

Core Viewpoint - The establishment of a performance comparison benchmark element library for public funds aims to standardize the selection and use of indices, enhancing the comparability of fund performance across products [1][2]. Group 1: Benchmark Library Structure - The benchmark library is divided into two categories: Category One and Category Two, encompassing a total of 141 indices, including 69 core indices in Category One and 72 indices in Category Two, covering mainstream investment targets in A-shares and Hong Kong stocks [1][2]. - Category One includes indices that are highly representative and widely recognized, encouraging fund managers to select and use them in developing actively managed funds [2][3]. - Category Two focuses on innovation and differentiation, including indices with certain usage frequency and larger market capitalization, effectively supplementing Category One [1][2]. Group 2: Inclusion Criteria for Indices - Category Two indices must meet several standards, such as having a single constituent's weight not exceeding 20% for broad-based indices and at least 30 constituents for non-broad-based indices [3][4]. - Category One indices must meet Category Two standards and have an average free float market capitalization of at least 10,000 billion yuan over the past year, along with other relevant standards [3][4]. Group 3: Selection Principles for Different Index Types - For broad-based indices, selection is based on representativeness, investability, and coverage, requiring at least 10 actively managed funds to use the index as a benchmark [4][5]. - Industry theme indices must cover key strategic emerging industries or areas strongly supported by national policies, with a focus on market recognition and expert committee approval [4][5]. - Strategy indices should clearly reflect specific strategy factors or styles, with sufficient differentiation in risk and return profiles [5][6]. Group 4: Dynamic Adjustment of the Benchmark Library - The benchmark library is not static; it will undergo quarterly evaluations for the entry and exit of indices and semi-annual assessments for adjustments between the two categories [7]. - Indices in Category Two that meet Category One standards may be promoted to Category One, while those in Category One that no longer meet standards may be demoted [7]. - The expert group responsible for these evaluations consists of representatives from various industry institutions, ensuring a fair and transparent process [7].