Core Viewpoint - The recent reform in the public fund industry aims to reduce costs for investors while enhancing service quality from fund companies, coinciding with the ETF market surpassing 5 trillion [1][5][11] Summary by Sections Regulatory Changes - The "Regulations on the Management of Sales Expenses for Publicly Raised Securities Investment Funds" was released for public consultation on September 5, marking a significant step in the fee reform process initiated in July 2023 [1][4] - This reform is structured in three phases, with the third phase being the final critical step to implement fee reductions across the public fund sector [4] Fee Reductions - Management fees for actively managed equity funds have been reduced from 1.5% to 1.2%, and custody fees from 0.25% to 0.2% [5][6] - Transaction commissions for actively managed public funds have decreased from 0.08% to 0.05%, while ETF transaction commissions have been lowered to 0.025% [6] - Sales fees have seen significant cuts, with equity fund subscription fees dropping from 1.5% to 0.8%, and mixed fund fees from 1.5% to 0.5% [6][7] Investor Benefits - An example calculation shows that a 10,000 yuan investment in a fund could save approximately 35 yuan annually due to reduced management and custody fees [6] - For a 100,000 yuan investment in actively managed equity or mixed funds, total savings could exceed 1,000 yuan annually, with the overall annual benefit to investors estimated to exceed 50 billion yuan [7][11] Market Response - The fee reduction has led to a surge in fund sales, with multiple funds being fully subscribed on their first day of issuance, indicating a positive market response [8][11] - As of September 8, 12 funds have announced early closure of their fundraising periods, reflecting strong investor interest [8] Industry Outlook - The fee reform is expected to lower investor costs and enhance their experience, contributing to the high-quality development of the fund industry [11]

Fund Overview - The fund is named "Huashang Hong Kong Stock Connect Value Return Mixed Securities Investment Fund" and is a mixed-type securities investment fund [10][15] - The fund's initial offering price is set at 1.00 RMB per share [15] - The fund aims to primarily invest in stocks listed under the Hong Kong Stock Connect mechanism, focusing on value investment strategies to achieve long-term stable asset growth [15][16] Fund Management and Custody - The fund is managed by Huashang Fund Management Co., Ltd., and the custodian is China Merchants Bank Co., Ltd. [43][44] Fund Offering Details - The fund's offering period is from September 8, 2025, to September 24, 2025, with a maximum fundraising limit of 1 billion RMB [6][7] - If the fundraising amount reaches or exceeds 1 billion RMB, the fund may close early [7] - Investors must open a fund account or a trading account with designated sales institutions to subscribe to the fund [8][20] Investment Strategy and Risk - The fund will invest in a variety of financial instruments, including stocks, bonds, financial derivatives, and asset-backed securities, with a stock investment ratio of 60%-95% [16][17] - The fund will maintain at least 80% of its non-cash assets in Hong Kong Stock Connect stocks [17] - The fund is subject to various risks, including credit risk, interest rate risk, liquidity risk, and market risk associated with the investment environment and trading mechanisms [2][3] Subscription and Fees - The fund adopts a front-end fee model for subscriptions, with specific fee rates for different types of investors, including pension clients [21][22] - Investors can subscribe multiple times during the offering period, with a minimum subscription amount of 1.00 RMB [9][21] Refund and Fund Activation - If the fund fails to meet the necessary conditions for activation by the end of the offering period, all funds will be returned to investors with interest [41][42] - The fund will be activated once it meets the conditions of raising at least 200 million RMB and having a minimum of 200 investors [42]