China Securities Regulatory Commission releases "Guidelines for Publicly Offered Securities Investment Fund Performance Comparison Benchmarks"

On January 23, the China Securities Regulatory Commission released the "Guidelines on Performance Benchmark for Publicly Offered Securities Investment Funds," which will take effect on March 1, 2026. The guidelines consist of six chapters and twenty-one articles, focusing on the following key points: 1. Emphasizing the role of performance benchmarks, highlighting the seriousness and stability in the use of performance benchmarks. It is specified that the performance benchmark should match the core elements and investment style of the fund contract, and once selected, it should not be changed arbitrarily. 2. Strengthening the internal control and management of fund managers. It is emphasized that the performance benchmark should be determined by the company's management team, and fund managers should establish sound internal control mechanisms and management systems to monitor the stability of the fund manager, as well as the stability of the fund product's investment style. 3. Enhancing external constraints on performance benchmarks. It is clarified that fund custodians have a supervisory responsibility and that fund sales institutions, fund evaluation institutions need to comply with regulations on the display and use of performance benchmarks, and also ensure that fund managers and sales institutions educate investors properly. 4. Strict supervision. The China Securities Regulatory Commission and its agencies will handle violations and non-compliance by fund managers, fund custodians, fund sales institutions, and fund evaluation institutions according to the law. The guidelines cover various aspects of selecting and using performance benchmarks for publicly offered securities investment funds to protect the interests of investors. The guidelines aim to improve the internal control and management of fund managers while enhancing the supervision and management of performance benchmarks in the industry.