Wu Qing: Will optimize the fee structure of actively managed equity funds to reverse the phenomenon of fund companies relying on both good and bad market conditions to maintain stable income.

Chairman of the China Securities Regulatory Commission, Wu Qing, stated on May 7th at a press conference held by the State Council Information Office that the Commission would release the "Action Plan for Promoting the High-Quality Development of Public Funds" on that day. He introduced that the reform emphasizes strengthening the bond between public funds and investors, optimizing the fee structure of actively managed equity funds. Poor performing funds must charge lower management fees, and through a floating management fee mechanism, the phenomenon of fund companies guaranteeing income regardless of performance will be reversed. Additionally, performance indicators such as whether returns beat benchmarks and the financial situation of investors directly related to their interests will be included in the evaluation systems of fund companies and fund managers, urging fund companies to shift from focusing on scale to focusing on returns.