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

January 23, the China Securities Regulatory Commission (CSRC) issued the “Guidelines on Benchmark Performance Comparison for Publicly Offered Securities Investment Funds.”

To implement the “Action Plan to Promote the High-Quality Development of Public Funds,” adhere to a people-investor-first approach, regulate the selection and use of benchmark performance comparison for publicly offered securities investment funds, and ensure the benchmark performance comparison can effectively play roles such as representing a product’s investment style, constraining investments, and measuring performance; to urge fund managers to improve internal controls and management mechanisms, and to protect investors’ legitimate rights and interests, the CSRC formulated the “Guidelines on Benchmark Performance Comparison for 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, highlight the representational role of the benchmark performance comparison, emphasizing the seriousness and stability in applying the benchmark performance comparison. It clarifies that the benchmark performance comparison should match the core elements and the product’s investment style as agreed in the fund contract, and once selected it shall not be changed arbitrarily. Second, strengthen internal control and management by fund managers. It clarifies that the benchmark performance comparison should be determined by the company’s management, and fund managers should establish and improve internal control mechanisms and a management system, and strengthen ongoing management of fund managers and the continuous stability of investment styles for fund products. Third, strengthen external constraints on the benchmark performance comparison. It clarifies the supervisory responsibilities of the fund custodians, standardizes how fund distribution institutions and fund evaluation institutions display and use the benchmark performance comparison, and requires fund managers and fund distribution institutions to do a good job in investor education and other work. Fourth, strictly regulate supervision. The CSRC and its dispatched agencies, according to law, handle unlawful and non-compliant conduct by fund managers, fund custodians, fund distribution institutions, fund evaluation institutions, and practitioners.

(CSRC)

(Editor: Xu Nannan)

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