Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released the "Action Plan for Promoting High-Quality Development of Public Funds," aiming to transform the public fund industry from focusing on scale to prioritizing returns, enhancing investor satisfaction, and providing a clear roadmap for future development [2] Group 1: Reform Measures - The plan addresses the long-standing issue of "guaranteed returns" in the public fund industry, where management fees are disconnected from performance, thus failing to protect investor interests [3] - A floating management fee mechanism linked to fund performance will be established for newly set up actively managed equity funds, with fee rates adjusted based on performance relative to benchmarks [4] - Regulatory requirements mandate that leading institutions must issue at least 60% of their actively managed equity funds under this new fee structure within one year [5] Group 2: Performance Evaluation Changes - The plan emphasizes long-term performance evaluation, shifting the focus from short-term metrics to a system that prioritizes fund investment returns [6] - Fund companies must ensure that the performance indicators for executives and fund managers reflect long-term investment returns, with at least 50% weight on investment returns for executives and 80% for fund managers [7] - Key performance indicators for fund companies will now include investor returns and benchmark comparisons, with a significant increase in the weight of long-term performance metrics [7] Group 3: Salary Management - The plan aims to improve salary management systems within fund companies, linking compensation to fund investment returns and enforcing stricter requirements for fund managers regarding performance [8] - Fund managers with long-term performance below benchmarks will see a significant reduction in their performance pay, while those exceeding benchmarks can receive increased compensation [8] Group 4: Focus on Equity Investment - The plan seeks to enhance the scale and proportion of equity investments within public funds, with regulatory measures to support this shift [9] - A classification evaluation mechanism for fund sales institutions will be established, prioritizing those that focus on equity fund sales and long-term investor returns [10] - The registration process for equity funds will be expedited, significantly reducing the time required to bring quality products to market [10] Conclusion - The release of the "Action Plan for Promoting High-Quality Development of Public Funds" marks a significant milestone for the public fund industry, aiming to resolve long-standing issues and drive the industry towards high-quality development, ultimately benefiting investors and contributing to the stability of the capital market [10]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued an action plan to promote the high-quality development of public funds, focusing on optimizing the fee structure for actively managed equity funds and enhancing the performance evaluation and compensation mechanisms for fund managers [1]. Group 1: Fee Structure Optimization - The action plan promotes a performance-based floating management fee model for newly established actively managed equity funds, where the fee rate is determined based on the fund's performance relative to a benchmark [2]. - Fund companies are encouraged to issue at least 60% of their actively managed equity funds under this new fee structure within a year [2]. Group 2: Performance Evaluation and Compensation - Fund managers' performance pay will be reduced if their funds underperform the benchmark by more than 10 percentage points over three years [2]. - The action plan mandates that the performance evaluation of fund companies should prioritize investment returns, with at least 80% of the evaluation weight on long-term performance metrics [3]. Group 3: Registration and Sales Mechanisms - A fast registration mechanism for ETFs will be implemented, aiming to complete the registration process within five working days [4]. - A classification evaluation mechanism for fund sales institutions will be established to enhance the issuance and sales of equity funds [5]. Group 4: Investor Services and Product Development - The action plan emphasizes improving services for long-term investors and creating more suitable fund products for personal retirement investments [7]. - It also aims to enhance the flexibility of public fund operations and expand investment strategies to meet diverse investor needs [7]. Group 5: Regulatory Enhancements - The action plan includes measures to strengthen regulatory enforcement and increase penalties for violations, ensuring stricter governance and compliance within the industry [9][10]. - It emphasizes the need for improved governance structures and higher entry standards for fund companies and sales institutions [9].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued an action plan to promote the high-quality development of public funds, focusing on the innovation and development of equity fund products [1] Group 1: Fund Product Innovation - The plan actively supports the innovation of actively managed equity funds, aiming to introduce more floating fee rate fund products linked to fund performance and investor returns, encouraging long-term holding [1] - There is a strong emphasis on developing various types of on-exchange and off-exchange index funds, continuously enriching theme-based stock index funds that align with national strategies and development directions [1] Group 2: Market Participation - The CSRC is researching the establishment of pilot products for off-exchange broad-based index funds that facilitate swap operations [1]