Public funds are transitioning from focusing on scale to focusing on investor returns.

On May 9, the general manager of Huaxia Fund, Li Yimei, expressed his view that the "Action Plan for Promoting the High-quality Development of Public Funds" recently released by the China Securities Regulatory Commission adheres to the principle of investor-centeredness. It requires industry institutions to firmly establish the core business philosophy of serving the best interests of investors, and to run through the entire chain of fund operation and management, including company governance, product issuance, investment operations, and evaluation mechanisms, to transition from focusing on scale to emphasizing investor returns. Through mechanism adjustments, the organic unity of the functional and profitability of public funds can be achieved, which will strengthen the ties with investor interests and help the industry to return to its performance origins and high-quality development. Li Yimei stated that in recent years, affected by factors such as stock market volatility, especially in the past two years, some equity funds have experienced certain losses, and issues such as weak investor satisfaction have also appeared in the public fund industry. The plan introduces indicators such as net asset growth rate, fund profit rate, and proportion of profitable clients, which can to a certain extent resolve the industry's tendency towards short-sighted focus on scale. This will help enhance the cautiousness of public fund institutions, guide them to actively control their size based on market conditions during the fund issuance and operation stages, and strengthen the industry's spontaneous counter-cyclical adjustment ability.