China's Securities Regulatory Commission (CSRC) has unveiled a new set of rules aimed at revolutionizing mutual fund trading fees. Set to take effect on July 1, 2024, these regulations are designed to enhance the management of securities trading fees, standardize how fund managers allocate trading commissions, and protect the rights of fund shareholders.
This move marks the completion of the second phase of China's fee reform initiatives in the public fund industry. Following the first phase, which concluded in October 2023 and focused on reducing management and custody fees for actively managed equity products, the new rules take the reform to the next level.
According to data from 2023, the implementation of these regulations is expected to decrease the annual total of stock trading commissions for public funds by a significant 38 percent. Overall, the measures from both phases of the fee reforms are projected to save investors approximately 20 billion yuan ($2.9 billion) each year.
These changes reflect China's ongoing commitment to creating a more transparent and cost-effective investment environment, benefiting both fund managers and investors alike.
Reference(s):
cgtn.com
