Group 1 - The China Securities Regulatory Commission (CSRC) issued the "Action Plan for Promoting the High-Quality Development of Public Funds," which includes 25 measures aimed at optimizing the fee structure for actively managed equity funds and enhancing the alignment of interests between fund companies and investors [1][2] - The plan emphasizes the need for over 20 supporting regulations to be developed for implementation, with a timeline for each policy measure already established by the CSRC [1] Group 2 - Fund managers of products with performance below the benchmark by more than 10 percentage points over three years will face significant reductions in their performance-based compensation, as highlighted in the new measures [2] - A notable number of funds have underperformed their benchmarks, with some lagging by over 50 percentage points [2] Group 3 - The Fuanda CSI A500 Index Enhanced Fund experienced a significant redemption event shortly after its launch, prompting the fund to adjust its net asset value precision [3] - The fund was established with a size of 425 million yuan and has seen a slight loss since inception, with its net asset value currently below 1 yuan [3] Group 4 - In April, public fund institutions conducted a record 9,796 research visits to A-share listed companies, marking a 129.47% increase from March [4] - The electronics sector was the most favored, receiving 1,754 visits, followed by the pharmaceutical and biological sector with 1,400 visits [4] Group 5 - Two ETFs, the Huazhang International Leader (DAX) and the Invesco S&P Consumer Select ETF, have issued warnings about significant premium risks in their secondary market trading prices, which are notably higher than their net asset values [5] - The Invesco S&P Consumer Select ETF has issued premium risk warnings for nine consecutive trading days [5] Group 6 - Liu Gesong's fund, Guangfa Small Cap Growth Mixed Fund, increased its holdings in Kesi Technology, raising its share count from 797,400 to 1,045,100, indicating a 24.77% increase in shares held [6] - Kesi Technology has been included in the top holdings of the Guangfa Small Cap Growth Mixed Fund [6] Group 7 - On May 8, the market saw a rise in major indices, with the Shanghai Composite Index up by 0.28% and the Shenzhen Component Index up by 0.93%, while the ChiNext Index rose by 1.65% [7] - The total trading volume in the Shanghai and Shenzhen markets was 1.29 trillion yuan, a decrease of 174.9 billion yuan from the previous trading day [7]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued an "Action Plan for Promoting High-Quality Development of Public Funds," which includes 25 measures aimed at enhancing the performance and accountability of fund managers, emphasizing the need for alignment between fund managers and investors' interests [1][2]. Group 1: Fund Manager Accountability - Fund managers with products underperforming the benchmark by more than 10 percentage points over three years will see a significant decrease in their performance-based compensation [1]. - Conversely, fund managers whose products significantly outperform the benchmark can receive reasonable increases in their performance-based compensation [1]. Group 2: Shift in Industry Focus - The action plan encourages a shift from prioritizing scale to focusing on returns, urging fund companies and sales institutions to enhance their service capabilities for investors [2][4]. - It emphasizes the need for a performance-based fee structure for actively managed equity funds, where management fees are linked to fund performance, reducing fees for underperforming funds [4]. Group 3: Strengthening Investor Interests - A comprehensive evaluation system will be established, focusing on investment returns, incorporating metrics like performance benchmarks and fund profitability, while reducing the emphasis on management scale and company profits [4]. - Fund companies are encouraged to increase the proportion of their executives and fund managers investing in their own products, with stricter lock-up periods to align their interests with those of investors [4]. Group 4: Enhancing Fund Stability and Innovation - The plan aims to optimize fund registration processes and promote the development of more index funds and low-volatility products to enhance the scale and stability of equity investments [4]. - It also seeks to strengthen the binding force of performance benchmarks and implement long-term assessments of fund performance over three years to promote stable investment behaviors [4].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued an action plan to promote the high-quality development of public funds, proposing 25 measures, including significant salary reductions for fund managers whose products underperform their benchmarks by more than 10 percentage points over three years [1][3]. Group 1: Fund Performance and Manager Accountability - A notable number of funds have underperformed their benchmarks over the past three to five years, with some lagging by over 50 percentage points [1][3]. - For instance, the Minsheng Jianyin Innovation Growth Mixed Fund has a three-year net value growth rate of -58.8%, compared to its benchmark's -1.38%, indicating a performance gap exceeding 50 percentage points [3]. - Similarly, the Dongwu Double Triangle Fund has a five-year net value growth rate of -52.09%, while its benchmark grew by 0.76%, also reflecting a significant underperformance [4]. Group 2: Consequences for Fund Managers - Fund managers of products that fail to meet performance standards may face salary adjustments, reassignments, or even termination [2][5]. - Funds that have been underperforming for three years may also face liquidation, especially if the current fund manager has not been in charge for the full three years [5][7]. - The Changsheng Advanced Manufacturing Fund, for example, has a three-year net value growth rate of -51.71%, with its benchmark yielding 6.03%, putting it at risk of being liquidated due to low asset value [5][6]. Group 3: Adjustments in Performance Benchmarks - The new measures may lead to fund managers being more cautious in setting performance benchmarks, as many funds have already begun to adjust their benchmarks [8][9]. - For example, the CITIC Prudential New Sharp Mixed Fund changed its benchmark from a fixed deposit rate to a combination of equity and bond indices, indicating a shift in strategy [9]. - Other funds, such as the Fuyong Value Selection Mixed Fund, have also altered their benchmarks to reflect a more conservative investment approach [9].