The Guangdong government funds exceeding trillions of yuan welcome fee reforms, with management fees prohibited from being deducted from the principal, forcing industry competition and survival of the fittest.

Recently, the Finance Department of Guangdong Province issued a notice regarding the issuance of the "Guangdong Provincial Government Investment Fund Management Measures", sparking discussions in the market. One of the rules that has attracted much attention is that fund management fees should be paid from fund returns or interest, and generally not allowed to be charged to the principal. If the fund has not generated returns or interest, funds can be advanced from the principal, and then reimbursed once the fund generates returns or interest. Industry insiders believe that the "Management Measures" will have a significant impact on institutions in the Pearl River Delta region, potentially accelerating the survival of the fittest in the industry and forcing institutions to enhance their own investment capabilities. Some investors suggest that different regulatory approaches should be adopted for government investment funds, government-guided funds, and sub-funds. In recent years, the Guangdong government investment funds have experienced rapid development. By the end of 2024, there were as many as 155 government investment funds in Guangdong Province, with a total subscribed capital of 1.77 trillion yuan, of which 1.24 trillion yuan has been paid in. At the same time, Guangdong is actively promoting fund development, with plans to coordinate resources and establish industry investment funds and venture capital funds with a combined total size of over 1 trillion yuan.