China Securities Regulatory Commission, Provisions for Strengthening the Administration of the Securities Transactions of Publicly Offered Securities Investment Funds (Draft for Comments)

Issued: December 8, 2023

Main contents: The Provisions reasonably reduce the commission rate on the securities transactions of public funds. Passive stock-type fund products may not pay fees such as research service fees by way of a commission on a securities transaction and the commission rate on stock transactions may not, in principle, exceed the average market level of commission rates on stock transactions; where another type of fund product pays research service fees by way of a commission on a securities transaction, the commission rate on stock transactions may not, in principle, exceed twice the average market level of commission rates on stock transactions.

The Provisions lower the upper limit on the allocation percentage of the commission on a securities transaction. Firstly, for equity fund managers with less than RMB 1 billion under their management, the upper limit remains at 30%; for equity fund managers with more than RMB 1 billion under their management, the upper limit is lowered from 30% to 15%.