Core Viewpoint - The release of the "Guidelines for Performance Benchmarking of Publicly Offered Securities Investment Funds (Draft for Comments)" and the "Operational Details for Performance Benchmarking of Publicly Offered Securities Investment Funds (Draft for Comments)" by the China Securities Regulatory Commission marks a significant step towards a more standardized, transparent, and professional development of China's public fund industry, focusing on the regulation of performance benchmarks and enhancing discipline in active investment processes [1][2][3]. Group 1: Industry Development - The implementation of the guidelines and operational details is seen as a foundational measure for the public fund industry to achieve high-quality development, establishing a binding mechanism for interests and optimizing assessment and incentive constraints [2][4]. - The guidelines aim to standardize the selection and use of performance benchmarks, improve internal controls of fund managers, and protect investors' rights, thereby enhancing the industry's role in wealth management [2][4][6]. Group 2: Performance Benchmarking - Performance benchmarks are crucial for fund companies to set a baseline based on fund type, investment scope, and strategies, allowing investors to understand product positioning and risk-return characteristics [1][5]. - The guidelines require that performance benchmarks must adhere to principles of representativeness, objectivity, constraint, and continuity, ensuring a comprehensive internal control system for benchmark selection, disclosure, monitoring, evaluation, and correction [6][7]. Group 3: Investor Protection - The guidelines emphasize the need for fund managers to establish a performance assessment system centered on fund investment returns, linking compensation to fund performance to align interests with investors [4][6]. - By clarifying performance benchmarks, investors can form reasonable return expectations and accurately identify risk-return characteristics, leading to better asset allocation decisions [6][9]. Group 4: Impact on Fund Management - The guidelines are expected to reduce the occurrence of style drift and enhance the predictability of fund performance by setting clear standards for investment management [10]. - Fund managers are encouraged to focus on long-term, value-oriented investment strategies, minimizing frequent trading driven by short-term market fluctuations [10].

Core Viewpoint - The implementation of the new guidelines and operational rules for performance benchmarks in the public fund industry marks a significant step towards a more standardized, transparent, and professional development in China’s public fund sector [2][9]. Summary by Sections Regulatory Changes - The China Securities Regulatory Commission and the Asset Management Association of China have issued draft guidelines and operational rules for performance benchmarks, inviting public feedback [2]. - The new regulations aim to enhance the binding of interests between fund companies and investors, providing better services and improving investor satisfaction [2][9]. Impact on Fund Management - The new rules require fund managers to strengthen the tracking, evaluation, and disclosure of performance benchmarks, which will help prevent "style drift" and clarify product positioning [4][5]. - The guidelines emphasize the importance of performance benchmarks in guiding investment strategies and ensuring that fund managers adhere to the agreed investment strategies [5][7]. Industry Response - Multiple public fund institutions have expressed strong support for the new regulations, viewing them as a means to translate high-quality development principles into actionable measures [9][10]. - Fund companies are expected to implement the new rules actively, ensuring compliance with the established benchmarks and enhancing the overall investment experience for clients [9][10]. Investor Benefits - Clear performance benchmarks will help investors form reasonable return expectations and accurately assess the risk-return characteristics of products, aiding in informed asset allocation decisions [10][12]. - The new guidelines are anticipated to improve the transparency and reliability of performance benchmarks, allowing investors to objectively evaluate fund managers' capabilities [10][12].