Core Viewpoint - The launch of the "Action Plan for Promoting the High-Quality Development of Public Funds" marks a significant reform in the fund industry, particularly with the introduction of floating fee rate products, which are expected to enhance investor engagement and align interests between fund managers and investors [1][2]. Fund Industry Reform - The China Securities Regulatory Commission (CSRC) issued the action plan on May 7, 2025, which establishes a floating management fee mechanism linked to fund performance, aiming to optimize the fee structure of actively managed equity funds and promote cost reduction in the public fund sector [1][2]. - The floating management fee structure allows for varying fees based on the investor's holding period and performance, with higher fees for better performance and lower fees for underperformance [1][2]. Product Details - The newly launched Zhongyin Quality Emerging Mixed Securities Investment Fund features a tiered management fee structure that includes fixed management fees, contingent management fees, and excess management fees, depending on the investor's holding duration and investment results [1][2]. - If the holding period is less than one year, a management fee of 1.2% is charged; for longer holding periods, the fee adjusts based on performance, with a maximum of 1.5% for annualized excess returns above 6% and a minimum of 0.6% for returns below -3% [2]. Performance Benchmarks - The performance benchmarks for Zhongyin Quality Emerging are aligned with industry trends, incorporating the CSI 300 Index, Hang Seng Index, China Bond Composite Index, and bank demand deposit rates, reflecting a comprehensive view of market performance [2]. Fund Management - The fund is managed by Li Sijia, who emphasizes large-cap growth and balanced sector allocation, utilizing a combination of top-down and bottom-up investment strategies to select leading companies with high barriers to entry and market potential [3]. - Li Sijia has demonstrated strong historical performance, with the Zhongyin Strategic Emerging Industries Fund achieving a 43.92% return over the past year, significantly outperforming its benchmark [3]. Market Outlook - The outlook for the market is positive, with a new capital expenditure cycle in A-shares and a focus on technology growth as a key driver for expansion, particularly in AI and cyclical commodity pricing [4].

Core Viewpoint - The article discusses the launch of the floating fee rate product "Zhongyin Quality Emerging Mixed Securities Investment Fund" by Zhongyin Fund, in response to the implementation of the "Action Plan for Promoting the High-Quality Development of Public Funds" which emphasizes a performance-linked fee structure [1][2]. Fund Fee Structure - The floating management fee structure links fees to the investor's holding period and performance, allowing for higher fees if returns exceed certain thresholds and lower fees if returns are negative [2]. - If the holding period is less than one year, a management fee of 1.2% is charged; for one year or more, the fee varies based on performance, with a maximum of 1.5% for annualized excess returns over 6% and a minimum of 0.6% for returns below -3% [2]. Performance Benchmark - The performance benchmark for Zhongyin Quality Emerging is aligned with industry trends, including the CSI 300 Index, Hang Seng Index, and the China Bond Composite Index, reflecting a comprehensive view of market performance [2]. Fund Manager Profile - The fund manager, Li Sijia, focuses on large-cap growth and balanced sector allocation, employing a combination of top-down and bottom-up investment strategies [3]. - Li Sijia has demonstrated strong historical performance, with the Zhongyin Strategic Emerging Industry Fund achieving a 43.92% return over the past year, resulting in a 28.55% excess return [3]. Market Outlook - The article suggests that as China's economy transitions, a new capital expenditure cycle is beginning, with the equity market expected to perform well, particularly in technology growth sectors [4]. - Li Sijia remains optimistic about investment opportunities arising from AI and the impact of cyclical price changes on asset pricing [4].