Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released an action plan aimed at promoting the high-quality development of public funds, emphasizing the principle of "investor interests first" through a comprehensive reform framework [1] Group 1: Fee Structure Reform - A significant breakthrough in the reform is the structural change in the fee model for actively managed equity funds, linking management fees to performance and breaking the long-standing "guaranteed income" model [1] - The plan outlines a differentiated fee structure based on benchmark performance, where management fees can be adjusted up or down depending on the fund's performance relative to its benchmark [1] Group 2: Assessment System Overhaul - The reform addresses the industry's historical focus on scale over performance, shifting the assessment criteria for fund companies and managers to prioritize investor returns [3] - Fund companies are required to establish a performance-centered assessment system, with at least 50% weight on investment returns for executives and 80% for fund managers [3] - A long-term assessment mechanism will be implemented, with a minimum of 80% weight on returns over three years, ensuring alignment between fund managers' compensation and investor outcomes [3] Group 3: Industrialization and Systematic Approach - The reform aims to transform public funds from mere asset management entities to wealth management partners that share risks with investors, focusing on transparency, shared responsibility, and long-term relationships [4] - The emphasis on enhancing core investment research capabilities is crucial for achieving high-quality development, moving from individual expertise to a systematic, collaborative production model [4] - The goal is to create clearer, more stable, and sustainably outperforming products and solutions, reinforcing the role of capital markets as stabilizers in the economy [4]