The China Securities Regulatory Commission issues the "Guidelines for Performance Benchmarks of Publicly Offered Securities Investment Funds"

On January 23, the China Securities Regulatory Commission issued the “Guidelines for Performance Benchmarking of Publicly Offered Securities Investment Funds.”

To implement the “Action Plan for High-Quality Development of Publicly Offered Funds,” adhere to an investor-first approach, regulate the selection and use of performance benchmarks for publicly offered securities investment funds, and effectively play the roles of performance benchmarks in characterizing a product’s investment style, constraining investments, and measuring performance, the China Securities Regulatory Commission has formulated the “Guidelines for Performance Benchmarking of Publicly Offered Securities Investment Funds” (hereinafter referred to as the “Guidelines”). The Guidelines will take effect on March 1, 2026.

The Guidelines consist of six chapters and 21 articles. The main contents include: first, highlighting the benchmark’s role in characterization, emphasizing the seriousness and stability of applying performance benchmarks. It clarifies that the performance benchmark should match the core elements and the product’s investment style as agreed in the fund contract, and once selected, it may not be changed arbitrarily. Second, strengthening the internal control and management of fund managers. It clarifies that the performance benchmark should be determined by the company’s management decision-making, and that the fund manager shall establish and improve internal control mechanisms and management systems, strengthening ongoing management of fund managers and the sustained stability of a fund product’s investment style. Third, strengthening external constraints on performance benchmarks. It clarifies the monitoring responsibilities of the fund custodian, standardizes the conduct of fund sales institutions and fund evaluation institutions regarding the display, application, and so on of performance benchmarks, and requires the fund manager and fund sales institutions to do a good job of investor education, among other work. Fourth, strict supervision. The China Securities Regulatory Commission and its dispatched agencies, in accordance with law, will handle illegal and non-compliant conduct by fund managers, fund custodians, fund sales institutions, fund evaluation institutions, and practitioners.

(CSRC)

(Editor: Xu Nannan)

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