CSRC revisits fund management rules after 12 years to improve product structure and attract long-term capital

To implement the 'Action Plan for High-Quality Development of Public Mutual Funds', standardize investment operations, support equity funds, and enhance operational flexibility, the China Securities Regulatory Commission (CSRC) has issued a draft revision of the 'Measures for the Administration of Operations of Publicly Offered Securities Investment Funds' after a 12-year gap. Key updates include: addressing issues by strengthening regulatory requirements and manager responsibilities, such as mandating counter-cyclical positioning and clearly defining investment directions for industry-themed funds; promoting equity fund development by lowering establishment thresholds and optimizing index fund regulations to encourage innovation and attract long-term capital; and improving certain regulatory indicators and mechanisms, including adjustments to liquidation conditions for 'mini funds'. The rules include a one-year transition period during which existing contracts non-compliant with the new standards may be amended upon mutual agreement between fund managers and custodians.