Enriching underlying investment tools: public fund allocation portfolios are poised for growth.

The upsurge in multi-asset allocation by public mutual funds is growing stronger. Recently, the China Securities Regulatory Commission (CSRC) solicited public opinions on the "Measures for the Operation and Management of Publicly Offered Securities Investment Funds" and supporting rules. Among them, several deregulatory provisions concerning the investment scope of funds have drawn industry attention, such as raising the upper limit on the proportion of non-FOF products investing in other funds from 10% to 30%, and allowing FOFs to invest in ETF feeder funds. In addition, the threshold for establishing a FOF is proposed to be lowered to 50 million yuan. Industry insiders view this as a set of deregulatory provisions "tailor-made" for asset allocation products, which will further broaden the strategy space of related products and enhance the allocation efficiency of fund portfolios. In the future, public mutual funds will place greater emphasis on multi-asset portfolio management capabilities, and FOFs and "fixed income plus" products, which inherently possess asset allocation attributes, will be important directions for competition among public fund institutions.