Core Viewpoint - The recent scale control announcement by China Europe Fund for its high-performing fund, China Europe Small Cap Growth Mixed Fund, highlights a shift in the industry towards prioritizing performance and long-term value over mere scale expansion [1][2]. Group 1: Scale Control Measures - China Europe Fund has set a scale limit of 2 billion yuan for the China Europe Small Cap Growth Mixed Fund, employing a "proportional confirmation" method to manage subscriptions [1]. - Similar scale control actions have been observed in other high-performing funds, such as Hengyue Balanced Optimal Mixed Fund and CITIC Prudential Prosperity Optimal Mixed Fund, which have also announced subscription limits or suspensions [1]. - The "proportional confirmation" principle allows for a uniform reduction in subscription amounts when total subscriptions approach the set limit, ensuring that only a portion of the applications are confirmed if the limit is exceeded [1]. Group 2: Industry Trends - The scale control initiative signals a transition in the industry from a "scale competition" model to a "quality competition" model, emphasizing the importance of managing fund capacity to maintain performance [2]. - This refined operational model is seen as beneficial for maintaining stable fund operations, allowing fund managers to adhere to established investment strategies without being forced to adjust portfolios due to excessive scale [2]. - As market conditions evolve and investor demands diversify, reliance solely on scale expansion is becoming insufficient; enhancing investment management capabilities and optimizing strategies are essential for competitiveness [3].