1. **High-Quality Development Action Plan for Mutual Funds Released** On May 7, the China Securities Regulatory Commission (CSRC) issued the *Action Plan to Promote High-Quality Development of Mutual Funds*, outlining 25 measures to reshape the industry. Key focuses include optimizing fee structures for active equity funds, strengthening investor-company alignment, and enhancing service capabilities. Analysts view this as a pivotal shift toward sustainable growth.
2. **Three-Phase Fee Reform Concludes, Saving Investors Over ¥50 Billion Annually** The CSRC finalized mutual fund fee reforms on September 5, reducing management, trading, and sales fees in stages since 2023. The reforms are projected to save investors over ¥50 billion yearly, fostering long-term market participation and improving returns.
3. **Record AUM Nears ¥37 Trillion, Equity Funds Lead Growth** By October 2025, mutual fund assets under management (AUM) hit ¥36.96 trillion, driven by rising demand for wealth management and product innovation. Equity funds (stocks and hybrids) surged to ¥10.18 trillion, reflecting a structural shift toward risk assets.
4. **ETF Market Soars to ¥5.7 Trillion Amid Policy Support** China’s ETF market expanded 53% year-on-year to ¥5.7 trillion, with equity ETFs dominating. Bond ETFs, particularly tech-focused "Sci-Tech Innovation Bond ETFs," saw explosive growth, raising ¥270 billion within months.
5. **New Performance Evaluation Rules Tackle "Scale Over Returns" Issue** In December, fund companies adopted stricter performance-linked compensation rules to prioritize investor returns over AUM growth. The move aims to stabilize talent flows and incentivize long-term value creation.
6. **Benchmark Reforms Enhance Fund Transparency** New guidelines standardized performance benchmarks, curbing "style drift" and improving accountability. A centralized benchmark database was introduced to aid fund selection and evaluation.
7. **AI Reshapes Fund Management** AI integration advanced across research, risk assessment, and advisory services, enabling data-driven decisions. Fund managers now leverage AI for trend analysis while retaining human judgment for strategic calls.
8. **REITs Market Expands with Commercial Property Inclusion** China’s REITs market grew 38% to ¥216 billion, diversifying into hotels, offices, and urban renewal projects. Commercial property REITs were greenlit, unlocking trillion-yuan opportunities.
9. **Theme Fund Rules Tighten to Prevent Misalignment** Regulators mandated stricter adherence to stated investment themes, requiring 80%+ portfolio compliance. Violations now impact manager evaluations, ensuring investor protection.
10. **Globalization Accelerates via Cross-Border ETFs** Cross-border ETF AUM neared ¥920 billion, covering markets like Brazil and Germany. QDII quotas rose to $170.9 billion, while firms expanded overseas with subsidiaries in Singapore and Macau.
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