Core Viewpoint - The asset management industry is fundamentally about trust, and recent fee reduction reforms in the public fund sector aim to enhance transparency and return to the core values of integrity and investor benefit [1]. Group 1: Fund Performance and Fees - Six out of seven highlighted funds are index funds, with four being newly established in 2025. These index products, which should ideally focus on low costs, are facing high implicit trading costs [2]. - The trading commissions for the new funds have surged, with the trading commission for the Hua Bao S&P Hong Kong Stock Connect Low Volatility Dividend ETF Link A being 5.39 times its management fee, the highest among the funds [3]. - The Hua Bao Zhong Zheng A500 ETF Link A saw its total shares drop from 1.026 billion at inception to 494 million by the end of March 2025, indicating a significant reduction in fund size [4][6]. Group 2: Impact of Fund Size Reduction - The majority of the reduction in fund size came from the C shares, which decreased by 455 million shares. This rapid withdrawal has led to a liquidity crisis, forcing fund managers to sell off holdings in the secondary market, resulting in increased trading activity and high commission costs [6]. - A total of seven funds under Hua Bao have reported trading commissions exceeding their management fees, with many funds experiencing higher turnover rates compared to the previous year [7]. Group 3: Performance Metrics - The Hua Bao Zhong Zheng Financial Technology Theme ETF Link A has a trading commission that is 1.99 times its management fee, while the Hua Bao Zhong Zheng Financial Technology Theme ETF Link A has underperformed its benchmark by nearly 47 percentage points over the past year [10][12]. - The Hua Bao Overseas China Mixed Fund, managed by a key figure in the company, has a trading fee that is 2.53 times its management fee, with a cumulative return of -7.81% over three years, significantly lagging behind its benchmark [12][13]. Group 4: Trading Behavior and Investor Impact - The turnover rate for the Hua Bao Overseas China Mixed Fund skyrocketed from 493.95% last year to 866.99% this year, indicating a trend of increased trading activity across multiple funds [15]. - The high trading commissions and turnover rates suggest a potential business model where "helping funds" collaborate with designated brokers to generate commissions, ultimately costing ordinary investors [9][19].

Core Viewpoint - The quantitative private equity industry is experiencing renewed interest, with trading commission rates and rebate issues becoming focal points [1] Group 1: Trading Commission Rates - The trading commission rates for quantitative private equity firms generally range from 0.01% to 0.015%, with significant variations based on the firm's scale, strategy, and business relationships [1][2] - Larger quantitative firms, due to their high trading frequency and capital scale, often negotiate lower base trading rates, typically between 0.01% and 0.02% [2] - Smaller firms, despite having lower management scales, also engage in high-frequency trading, leading to substantial trading volumes [2] - The commission structure can be viewed as a combination of fixed and variable rates, with the breakeven point for trading commissions generally set around 0.012% [3] Group 2: Cost Implications - A quantitative private equity firm with a scale of 10 billion yuan and an annual turnover rate exceeding 200 times could incur annual trading commission expenses of approximately 200 million yuan, assuming an average commission rate of 0.01% [4] - Recent regulatory changes have significantly increased high-frequency trading costs, compelling firms to reduce trading frequency and turnover rates [4] Group 3: Compliance and Rebate Issues - Commission rebates are explicitly prohibited by regulations, raising compliance concerns within the industry [5] - The return of commissions not only violates regulatory guidelines but also reflects a lack of internal risk control and compliance mechanisms [6] - Various regulations, including the Securities Brokerage Business Management Measures, explicitly forbid the return of commissions or any form of non-compliant incentives to investors [6][7]