CSRC: requiring fund companies to establish a comprehensive assessment system with fund investment returns as the core, and appropriately reduce the weighting of operational indicators such as scale ranking and income and profit in the assessment.

The China Securities Regulatory Commission released the "Action Plan for Promoting the High-quality Development of Public Funds" and reformed the performance evaluation mechanism of fund companies. The regulations on the performance evaluation management of fund companies were introduced, requiring fund companies to comprehensively establish a performance evaluation system with fund investment returns as the core, and appropriately reduce the weight of operational indicators such as ranking in size, income, and profit in the evaluation. The fund investment return indicator should cover both fund product performance and investor profit and loss situations. The former includes indicators such as fund net asset growth rate and performance benchmark comparison, while the latter includes indicators such as fund profit margin and percentage of profitable investors. Fund company shareholders and the board of directors should give a weight of not less than 50% to performance evaluation based on fund investment returns for senior executives; for fund managers, the weight of fund product performance indicators should not be less than 80%. A comprehensive long-term performance evaluation mechanism for fund investment returns should be fully implemented, with a weight of not less than 80% for long-term returns of three years or more.