Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced an action plan to promote high-quality development in the public fund industry, marking a significant reform in an industry worth over 30 trillion yuan [1][10]. Group 1: Reform Objectives - The action plan aims to shift the focus of public funds from "scale" to "returns," addressing issues related to investor satisfaction and fund performance [2][3]. - Key reforms include optimizing the fee structure for actively managed equity funds, ensuring that poorly performing funds charge lower management fees, and incorporating performance metrics into the evaluation of fund managers [3][6]. Group 2: Implementation Strategies - The reform will enhance the stability of fund investment behaviors by synchronously addressing both horizontal (peer products) and vertical (time dimension) aspects [4]. - The action plan emphasizes the importance of long-term mechanisms and incentive constraints to guide fund companies and sales institutions back to their core mission of serving investors [6]. Group 3: Focus on Equity Funds - The reform highlights the need to develop equity funds, which are crucial for providing unique value to investors and enhancing the capabilities of industry institutions [6][7]. - Since September of the previous year, the scale of equity funds has increased from 7 trillion yuan to 8.3 trillion yuan, indicating a growing emphasis on this segment [7]. Group 4: Governance and Investor Services - The reform will also focus on improving fund company governance, strengthening core investment research capabilities, and enhancing investor service levels to build first-class investment institutions [8]. - The public fund industry, with over 800 million investors, plays an increasingly important role in wealth management and capital market development in China [10]. Group 5: Future Outlook - The reform is seen as a necessary step in the evolution of China's capital market, promoting a virtuous cycle of investment and financing [11]. - The public fund industry is expected to continue exploring reforms to effectively allocate financial resources and ensure that residents benefit from economic growth [11].