Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued an action plan to promote the high-quality development of public funds, focusing on shifting the industry from "scale" to "return" and fostering a turning point for high-quality development [1] Group 1: Investor-Centric Reforms - The reform plan emphasizes a significant overhaul of the public fund assessment mechanism, aiming to optimize fund operation models and align fund company revenues with investor returns [2] - Specific measures include establishing a floating management fee system based on performance benchmarks, enhancing the constraints of performance comparison benchmarks, and gradually reducing investor costs [2] - Starting from March 21, 2025, certain index funds managed by the company will have their index usage fees covered by the fund manager, reducing costs for investors [2] - The company plans to maintain a strong dividend distribution, having distributed over 3.6 billion yuan across 90 instances in 2024, to enhance investor satisfaction [2] Group 2: Product Innovation and Development - The rapid growth of index products has led to the emergence of over a thousand ETF products, prompting the CSRC to promote high-quality development in index investment [3] - The reform plan calls for increasing the scale and stability of public fund equity investments and introducing more on-market and off-market index funds [3] - The company is expanding its index product offerings, having launched several new funds in 2025, including the Zhongyin CSI 300 Index Fund and Zhongyin STAR Market 50 ETF [3] - Future plans include accelerating the development of passive equity products and enhancing the alignment with national strategies and thematic investment opportunities [3] Group 3: Risk Management and Compliance - The public fund industry in China is entering its 27th year, with the new "National Nine Articles" reflecting a strong emphasis on regulatory oversight and risk prevention [4] - The reform plan outlines clear requirements for maintaining risk management, including improving multi-level liquidity risk prevention mechanisms and guiding long-term investment behaviors [4] - The company is committed to enhancing risk management and compliance, focusing on a platform-based, team-oriented, and integrated investment research system [4] - Ongoing reforms will strengthen governance across various dimensions, including product and risk management, while continuing to prioritize investor interests [4]