Core Viewpoint - The recent reform of public fund sales fees marks a significant milestone, emphasizing a shift towards investor-centric practices and the restructuring of the industry’s business model [1][5]. Summary by Sections Fee Reduction and Investor Benefits - The new regulations significantly lower the maximum subscription fees for equity, mixed, and bond funds, with an estimated annual benefit of approximately 47.21 billion yuan to investors from 2022 to 2024 [2][5]. - This reduction in fees aims to lower investment costs for investors while increasing the demand for enhanced research and management capabilities among fund managers [2]. Encouragement of Long-term Investment - The regulations eliminate sales service fees for investors holding funds for over a year, promoting long-term investment behaviors and discouraging short-term speculative actions [2]. Restructuring Sales and Service Models - The reform changes the distribution of redemption fees, directing all fees to fund assets, which encourages a shift from a sales volume-driven model to a retention and service-oriented model [3]. - Fund managers and sales institutions are now required to prioritize customer satisfaction and long-term relationships to retain clients [3]. Focus on Individual Investor Services - The regulations maintain a cap on trailing commissions for individual investors at 50%, while reducing the cap for institutional investors on bond and money market funds, incentivizing sales institutions to better serve individual investors [3]. Standardization of Advisory Services - The new rules prohibit fund sales institutions from charging maintenance fees on the same client holdings, addressing the issue of double charging in advisory services and promoting a service-oriented industry transformation [4]. Promotion of Direct Sales - The establishment of a centralized platform for institutional direct sales aims to enhance service efficiency and reduce operational costs, ultimately attracting more long-term capital into the market [4]. Overall Impact on the Industry - The reforms signal a commitment to enhancing investor confidence and stabilizing market expectations, contributing to the long-term healthy operation of the A-share market [5]. - The fee reform is seen as a crucial step towards high-quality development in the public fund sector, focusing on investor returns and sustainable industry practices [5].