Core Viewpoint - The public fund industry is undergoing significant reforms, with the introduction of strict sales regulations that prohibit the promotion of fund size and growth, leading to considerable debate within the industry [1] Group 1: Regulatory Changes - The recent release of the "Sales Behavior Norms for Publicly Raised Securities Investment Funds (Draft for Comments)" is considered the strictest sales regulation in history, particularly prohibiting the promotion of fund size and growth [1] - The new regulations are part of a broader initiative aimed at high-quality development in the public fund sector, with multiple new rules being discussed since the second half of this year [1] Group 2: Industry Reactions - Marketing personnel from fund companies expressed shock at the new regulation, noting that fund size is a critical indicator of product competitiveness and investor awareness [2] - Concerns were raised that smaller funds may lead to higher unit costs and greater tracking errors, impacting investor decision-making [2] Group 3: Importance of Fund Size - Fund size is seen as a reflection of market consensus and acceptance of the investment strategy, with larger ETFs typically offering better liquidity and narrower bid-ask spreads [3] - A larger asset base can dilute fixed operational costs, benefiting long-term investors by maintaining lower and more stable fee rates [4] Group 4: Transparency and Investor Rights - The prohibition on promoting fund size may undermine the transparency advantage of ETFs, which are valued for their clear investment objectives and operational transparency [5] - Fund size and its changes are considered essential information for investors, influencing their decisions and reflecting market activity in specific sectors [4][6] Group 5: Potential Challenges - The regulation may create confusion if it restricts the use of publicly available size data in promotional materials, leading to questions about regulatory consistency [6] - Fund companies may need to explore alternative metrics for promotion, such as trading volume and turnover rates, which could still relate to fund size [6]