Core Viewpoint - A significant wave of risk level reassessment has swept through the public fund industry, with nearly 20 fund companies issuing over 20 adjustment announcements since September, affecting hundreds of products. The adjustments primarily involve raising risk levels, with many previously considered "stable" bond funds and "fixed income+" products being upgraded from R2 (medium-low risk) to R3 (medium risk), and some high-volatility equity funds being raised to R4 (medium-high risk) [1][5][6]. Summary by Sections Adjustment Trends - Since September 2025, the frequency of risk level adjustment announcements in public funds has significantly increased, with major fund companies like Huazhang Fund and Fuguo Fund announcing adjustments for multiple products, primarily raising risk levels [3][5]. - For instance, Huazhang Fund announced on October 20 that 17 of its funds would have their risk levels raised, with bond funds moving from R2 to R3 and several equity funds from R3 to R4 [3][5]. - Fuguo Fund also reported on October 9 that 28 out of 31 funds would see their risk levels increased, with 20 funds moving from R2 to R3 and 8 from R3 to R4 [3][5]. Involvement of Sales Channels - The adjustments are not limited to fund companies; banks and third-party sales channels are also involved. For example, CITIC Bank adjusted the risk ratings of 17 asset management products, with some being downgraded and others upgraded [5][6]. - Other banks, such as Agricultural Bank and Construction Bank, have also made similar adjustments to their sold public fund products [6]. Regulatory and Market Drivers - The core drivers of these risk level adjustments are regulatory requirements and market changes. The implementation of the "Commercial Bank Agency Sales Business Management Measures" in October 2025 has been a direct catalyst for banks to adjust risk levels [7][8]. - Market volatility has also played a role, with some thematic funds showing significant performance but increased net value volatility, prompting a reassessment of risk levels [8]. Dynamic Risk Assessment Process - The process for adjusting risk levels involves a combination of third-party evaluations and the fund managers' assessments, with a tendency to adopt the higher of the two ratings. This dynamic assessment is crucial for accurately reflecting the risk characteristics of the funds [9]. - The adjustments are characterized by a "higher not lower" principle, driven by regulatory mandates, with banks, fund companies, and third-party sales channels working in coordination [9]. Impact on Investors - The adjustments have direct implications for fund investors, who will receive notifications about changes in risk levels. Investors are encouraged to reassess their risk tolerance in light of these changes [11][12]. - New investors may face restrictions on purchasing funds if the adjusted risk level exceeds their assessed risk tolerance, serving as a protective measure against taking on excessive risk [11][12].

Core Viewpoint - A significant wave of risk level reassessment has swept through the public fund industry, with nearly 20 fund companies adjusting the risk levels of hundreds of products since September, primarily increasing risk ratings for previously considered "stable" bond funds and "fixed income+" products [1][4][10] Summary by Sections Risk Level Adjustments - Since September, nearly 20 fund companies have issued over 20 adjustment announcements, a sharp increase compared to previous months [4] - Major fund companies like Huazhang Fund and Fuguo Fund have announced risk level adjustments for multiple products, with many bond funds moving from R2 (medium-low risk) to R3 (medium risk) and several equity funds moving from R3 to R4 (medium-high risk) [3][4] Sales Channels Involvement - Adjustments are not limited to fund companies; banks and third-party sales channels have also participated in the risk level reassessment [5][6] - For instance, CITIC Bank has made multiple adjustments to the risk ratings of its sold asset management products, with a significant number of products seeing their risk ratings increased [5] Regulatory and Market Drivers - The core drivers behind the risk level adjustments are regulatory requirements and market changes, particularly the implementation of the new regulations by the National Financial Regulatory Administration [8][9] - The new regulations emphasize the need for sales institutions to ensure that product risks align with customer risk tolerance, leading to a more rigorous assessment process [8] Dynamic Risk Assessment - The adjustments reflect a broader trend towards dynamic risk assessment, where fund managers and sales institutions regularly evaluate and adjust risk ratings based on market conditions and product performance [9][10] - This dynamic approach requires investors to stay informed about changes in risk levels, especially when products are deemed to have increased risk [12][13] Impact on Investors - The adjustments have direct implications for investors, who will receive notifications about changes in risk levels and may need to reassess their investment strategies accordingly [11][12] - New subscription and investment plans may be restricted if the adjusted risk levels exceed the investor's risk tolerance, serving as a protective measure [12]