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 Benchmarks of Publicly Offered Securities Investment Funds.”

To implement the “Action Plan for Promoting High-Quality Development of Public Funds,” adhere to the investor-centered approach, standardize the selection and use of performance benchmarks for public funds, and effectively play the role of performance benchmarks in representing product investment styles, constraining investments, and measuring performance, the CSRC has formulated the “Guidelines for Performance Benchmarks of Publicly Offered Securities Investment Funds” (hereinafter referred to as the “Guidelines”), which will take effect on March 1, 2026.

The Guidelines consist of six chapters and twenty-one articles. The main contents include: First, emphasizing the role of performance benchmarks in representing product investment styles, and stressing the seriousness and stability of their application. It clarifies that performance benchmarks should match the core elements and investment styles specified in the fund contract and must not be arbitrarily changed once selected. Second, strengthening internal control and management by fund managers. It specifies that performance benchmarks should be decided by the company’s management, and fund managers should establish sound internal control mechanisms and management systems, continuously managing the stability of fund managers and product investment styles. Third, enhancing external constraints on performance benchmarks. It clarifies the supervisory responsibilities of fund custodians, standardizes the display and use of benchmarks by fund sales agencies and evaluation agencies, and requires fund managers and sales agencies to conduct investor education. Fourth, strict supervision. The CSRC and its dispatched agencies will lawfully handle violations by fund managers, custodians, sales agencies, evaluation agencies, and practitioners.

(CSRC)

(Edited by: Xu Nannan)

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