Wu Qing: Optimize the fee structure of actively managed equity funds. Those with poor performance should be charged less management fees.

On May 7th, Wu Qing, Chairman of the China Securities Regulatory Commission, stated during a press conference organized by the State Council Information Office that the "Action Plan for Promoting the High-Quality Development of Public Fund" is relatively mature and will be released soon. The plan emphasizes strengthening the link between the interests of investors, urging the industry to return to the essence of being entrusted by others and managing their finances, optimizing the fee structure for actively managed equity funds, and reducing management fees for funds with poor performance. Through the implementation of a floating management fee mechanism, it aims to overturn the phenomenon of fund companies guaranteeing income regardless of market conditions. Criteria such as investor profits and losses will be incorporated into the evaluation system for fund companies and fund managers in order to protect investor interests.