Core Viewpoint - The upcoming release of the public fund performance benchmark rules by the China Securities Investment Fund Association aims to rectify the discrepancies in the fund industry, aligning fund managers' performance evaluations with actual investor experiences, thereby promoting a wealth-sharing capital market [2][4]. Summary by Sections Fund Performance Benchmark Rules - The new benchmark rules are expected to become the core standard for evaluating fund managers' performance against peers and generating excess returns, which will also influence their compensation and industry awards [2]. - The current lack of transparency and scientific guidance in measuring fund performance has led to a disconnect between investor experiences and fund companies' claims of outperforming benchmarks [3]. Issues in the Fund Industry - The fund industry faces a "lemon market" scenario where poor-performing funds drive out better ones, making it difficult for professional fund managers to stand out [3]. - Frequent redemptions by investors due to high costs of discerning fund quality lead to increased liquidity management costs and impact expected investment returns [3]. Impact on Capital Market - The misalignment of interests between fund companies, managers, and investors has weakened the wealth-sharing characteristics of the capital market, potentially reducing consumer confidence and purchasing power [4]. - The new benchmark rules are anticipated to shift the focus from traditional indices like the CSI 300 to more specialized benchmarks that align with fund characteristics, enhancing the professionalism and recognition of fund managers [4][5]. Reform and Future Directions - A decisive reform approach is necessary to address the existing benchmark chaos, with a call for a complete overhaul rather than a gradual transition to ensure the credibility of the new rules [5]. - Emphasis on developing precise and specialized index products is crucial for providing accurate benchmarks, which will enhance transparency and professionalism in fund operations [5][6].