Fund 'Growth Stagnation' Dilemma Sees Turning Point; Breakout Still Relies on Performance

The CSRC recently released the 'Draft Measures for the Administration of Public Offering Securities Investment Funds,' lowering the establishment threshold for equity funds and canceling the three-year liquidation rule for initiated funds, offering a turning point for many fund products struggling with 'growth stagnation.' Statistical data shows that since 2023, the proportion of funds established at the threshold and the share of initiated funds being liquidated have risen significantly. Particularly since 2026, the proportion of equity ETFs established at the threshold increased from under 50% to over 70%, while the share of initiated funds being liquidated rose from under 20% to over 45%. Interviewees stated that relaxing constraints provides necessary conditions for solving the 'growth stagnation' problem, but to expand scale, fund companies must still return to their self-sustaining capabilities, reasonably assess market demand, strengthen counter-cyclical product deployment, and simultaneously focus on maintaining style stability. The draft measures provide breathing room for initiated funds on the survival line; when liquidation thresholds are relaxed and operating costs shift, 'shell preservation' is no longer the sole goal—strengthening performance and expanding scale is the only direction for a 'breakout.' (Securities Times)