Core Viewpoint - The case against the star fund manager Shi Cheng highlights the challenges faced by Guotou Ruijin in its equity investment business, revealing significant losses and management issues within the firm [1][2][3] Group 1: Fund Manager and Performance - Shi Cheng, a prominent fund manager at Guotou Ruijin, was sued by an investor for financial contract disputes, marking a significant fall from grace for a manager who once thrived in the booming new energy sector [2][3][4] - From 2022 to 2024, the six funds managed by Shi Cheng incurred losses exceeding 160 billion yuan, with annual profits recorded as -29.24 billion yuan, -32.16 billion yuan, -57.52 billion yuan, -35.71 billion yuan, -1.65 billion yuan, and -6.45 billion yuan [4][5][6] - Shi Cheng's management scale plummeted from a peak of 212.87 billion yuan in 2021 to 87.86 billion yuan by the end of 2024, a reduction of over 125 billion yuan [5][6][18] Group 2: Strategic Shifts and Compliance Risks - In 2025, Shi Cheng attempted to pivot from new energy stocks to AI-related investments, which led to a short-term performance rebound, achieving a weighted return of 68.76%, significantly outperforming the benchmark [6][19] - However, this shift raised compliance concerns as it violated the fund's contract stipulating that at least 80% of assets must be in new energy sectors [19][20] Group 3: Company Challenges and Management Issues - Guotou Ruijin has faced ongoing difficulties, with its equity investment team, including managers like Qi Fapeng and Sang Jun, also reporting poor performance and significant asset shrinkage [2][20][21] - The overall management scale of Guotou Ruijin decreased from approximately 2786.45 billion yuan in 2024 to about 2542.53 billion yuan in 2025, reflecting a loss of nearly 243.92 billion yuan [22][23] - The firm is also experiencing a "miniaturization" issue, with many of its funds falling below the 3 billion yuan threshold, raising concerns about potential fund closures [22][23] Group 4: Future Outlook and Strategic Changes - Guotou Ruijin is undergoing a strategic transformation, influenced by changes in its management team and shareholder structure, particularly following UBS's acquisition of Credit Suisse [24][25] - The dual ownership of Guotou Ruijin and ICBC Credit Suisse by UBS may impact resource allocation and strategic direction for Guotou Ruijin moving forward [25][26]

Core Viewpoint - The article discusses a lawsuit against Guotou Ruijin Fund and fund manager Shi Cheng, initiated by an investor over a financial trust management contract dispute, with details of the case yet to be disclosed [1]. Company Overview - Guotou Ruijin Fund was established in 2002, originally named Zhongrong Fund Management Co., Ltd. It was acquired by Guotou Trust Investment Co., Ltd. and UBS Group in 2005, holding 51% and 49% of the shares respectively [2]. - As of September 30, 2025, Guotou Ruijin Fund has a management scale of 240.53 billion yuan and employs 32 fund managers [2]. Fund Manager Profile - Shi Cheng has a background as a researcher at China Jianyin Investment Securities Co., Ltd., and has held positions at various investment management firms before joining Guotou Ruijin Fund in March 2017. He has been a fund manager since March 29, 2019 [3]. - Under Shi Cheng's management, he oversees 12 funds, with a total scale of approximately 10.736 billion yuan. Six of these funds have underperformed compared to their peers [3]. Fund Performance - The two funds managed by Shi Cheng, Guotou Ruijin Industrial Transformation One-Year Holding Mixed A and C, have reported significant losses of 24.62% and 26.16% respectively as of December 25, 2025 [3]. - The top ten holdings of the fund include major companies such as Tencent Holdings, Alibaba, and Geely Automobile, indicating a diversified investment strategy across various sectors [4].

Group 1 - The investor Li has filed a lawsuit against Guotou Ruijin Fund and fund manager Shi Cheng for "financial entrusted management contract dispute," with the court date set for January 13, 2026 [1] - Shi Cheng currently manages six fund products with a total management scale of 10.736 billion yuan, showing a mixed performance with three products returning over 100% and one product, Guotou Ruijin Industrial Transformation One-Year Holding Mixed A, returning -24.59%, ranking in the bottom 10% of its peers [1] - Guotou Ruijin Fund is the first joint venture fund management company in China to reach the maximum foreign ownership limit of 49%, with shareholders including Guotou Taikang Trust Co., Ltd. and UBS Group, holding 51% and 49% respectively [1] Group 2 - As of the end of the third quarter, Guotou Ruijin's management scale is 238.793 billion yuan, ranking 34th among peers [2]

Core Viewpoint - The China Securities Investment Fund Industry Association has revised the "Performance Assessment Management Guidelines for Fund Management Companies (Draft for Comments)," which stipulates that fund managers of actively managed equity funds with poor performance for three consecutive years may face a salary reduction of 30% [1] Group 1: Fund Manager Performance - Notable fund manager Shi Cheng has recently attracted market attention due to his products underperforming benchmarks over the past three years, with more than half of the profit margins being negative, potentially leading to a salary cut [1] - According to Tonghuashun data, Shi Cheng's six actively managed equity funds have shown year-to-date returns outperforming the benchmark by 20% to 38%, but over the last three years, the returns have ranged from -5% to 28%, underperforming the benchmark by 18% to 48% [1] Group 2: Specific Fund Performance - The net values of Guotou Ruijin Advanced Manufacturing Mixed Fund, Guotou Ruijin Industry Trend Mixed A, and Guotou Ruijin Jinbao Mixed Fund have decreased by 27.97%, 27.86%, and 26.81% respectively over the last three years, underperforming their benchmarks by 47.71, 47.5, and 39.59 percentage points [1] - The Guotou Ruijin New Energy Mixed A fund has seen a net value decline of 26.78% over the past three years, underperforming its benchmark by nearly 18 percentage points [1] - The Guotou Ruijin Industry Transformation One-Year Holding Mixed A and Guotou Ruijin Industry Upgrade Two-Year Holding Mixed A, co-managed by Shi Cheng and others, have net value declines of 18.78% and 4.68% respectively, underperforming their benchmarks by 38.41 and 24.32 percentage points [1]

Core Viewpoint - The China Securities Investment Fund Industry Association has revised the "Performance Assessment Management Guidelines for Fund Management Companies (Draft for Comments)", which includes a performance salary adjustment mechanism for active equity fund managers based on their performance over the past three years [1][3]. Group 1: Performance Assessment Guidelines - Fund management companies must establish a tiered performance salary adjustment mechanism based on the past three years' performance compared to benchmarks and fund profitability [1]. - If a fund manager's product performance is more than 10 percentage points below the benchmark and the fund's profitability is negative, their performance salary should decrease by at least 30% [1]. - For performance below the benchmark but with positive profitability, the salary should still decrease, while those with performance above the benchmark and positive profitability may see reasonable salary increases [1]. Group 2: Fund Manager Performance - Notable fund manager Shi Cheng's products have underperformed benchmarks over the past three years, with returns ranging from -5% to 28%, lagging behind benchmarks by 18% to 48% [2]. - Specific funds managed by Shi Cheng, such as Guotou Ruijin Advanced Manufacturing Mixed and Guotou Ruijin Industry Trend Mixed A, have seen net values drop significantly, with declines of 27.97% and 27.86%, respectively, underperforming benchmarks by 47.71 and 47.5 percentage points [2]. - Shi Cheng has recently adjusted his portfolio, moving away from heavily concentrated positions in the struggling new energy sector to focus on AI and technology stocks, which has led to some recovery in fund performance [3]. Group 3: Industry Implications - The new guidelines aim to create a long-term performance assessment system that aligns the interests of fund managers with the long-term returns of investors, addressing issues of short-term incentives and soft accountability in the industry [4]. - The implementation of these guidelines is expected to shift the industry focus from mere scale expansion to value creation, trust accumulation, and high-quality development, ultimately contributing to the stability of the capital market [4]. - Attention will be needed on the detailed execution of these policies, particularly regarding the standardization of performance benchmarks and the regulation of co-investment operations to ensure that the benefits of reform reach investors [4].

Group 1 - The core viewpoint of the article highlights the underperformance of public funds managed by Guotou Ruijin, particularly focusing on the poor results of star fund manager Shi Cheng, who has significantly lagged behind in returns despite a bullish market in 2025 [2][3] - Shi Cheng's fund management strategy involved a substantial overhaul of the portfolio, with half of the top holdings replaced, including major players in the semiconductor sector, but the overall performance has been disappointing, with only two funds achieving over 10% returns [4][5] - Comparatively, other fund managers within Guotou Ruijin, such as Qi Fupeng and Sang Jun, also exhibited lackluster performance, with their managed products failing to achieve significant returns, indicating a broader issue within the active equity team [6][7] Group 2 - Shi Cheng's recent portfolio adjustments included high-profile stocks like SMIC and Huichuan Technology, but many of the new additions have not performed well, with some stocks like Cambrian still in decline [4][5] - Qi Fupeng's management of multiple funds has resulted in subpar performance, with the best-performing fund yielding less than 7%, and a significant portion of his top holdings experiencing declines [7][8] - Sang Jun's management has also been ineffective, with one fund not even achieving positive returns, and the overall equity portion of his funds being minimal, raising questions about the efficiency of having multiple managers [9][10]