Core Viewpoint - The removal of Guangzheng Asset Management from the public fund management qualification approval list by the CSRC marks the end of a 2-year and 4-month application process for a public fund license, reflecting a significant shift in the regulatory landscape for asset management firms in China [1][4]. Group 1: Regulatory Changes and Market Dynamics - The exit of Guangzheng Asset Management is part of a broader trend where several asset management firms are facing challenges in obtaining public fund licenses, particularly after the introduction of the "one participation, one control, one license" policy in May 2022 [2][3]. - The approval process for public fund licenses has seen a stark contrast between firms, with some like CMB Asset Management and Xingzheng Asset Management successfully obtaining licenses, while Guangzheng and GF Asset Management have not progressed [4][7]. - The regulatory environment has shifted towards a focus on differentiated development among asset management firms, impacting the approval logic for public fund licenses [7][8]. Group 2: Impact on Guangzheng Asset Management - Guangzheng Asset Management's public fund license application was initiated with high expectations for business synergy with its existing fund management entities, but the process stagnated, leading to its eventual withdrawal [3][4]. - The firm has over 30 billion yuan in public products that now face a challenging transition path due to the termination of its public fund license application [2][5]. - In response to the regulatory challenges, Guangzheng Asset Management has shifted focus to its private fund business, which has shown strong performance, ranking among the top five in the industry [6][7].