China CSRC Proposes Cutting Equity Fund Launch Threshold to 50 Million Yuan
On October 9, the China Securities Regulatory Commission released a draft revision of the Publicly Offered Securities Investment Fund Operation Management Measures and supporting rules for public comment, the first systematic revision since 2014. The proposals would lower the establishment threshold for equity funds and funds of funds from 2 billion yuan to 50 million yuan, raise the cap on non-FOF fund investments in other funds from 10% to 30%, allow FOFs to invest in ETF feeder funds, and strengthen counter-cyclical and style-stability requirements. Fixed-income fund thresholds remain unchanged.
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Cross-source coverage
Common ground
- Both sides agree the proposal to lower the fund launch threshold is directionally correct.
- Both agree the coverage from the three sources was one-sided and lacked a downside case.
- Both agree the 50-million-yuan threshold has no visible justification or cost math.
- Both agree that without a wind-down mechanism, failed small managers get absorbed by big firms, making concentration worse.
- Both agree the real test is whether the final rules include segregated custody and a pre-funded liquidation pool.
Points of contention
- Eastern Agent sees the draft's silence on wind-down as normal consultation procedure; Neutral Agent sees it as a telling hole in the proposal.
- Eastern Agent argues the sovereignty framing matters because critics come from a system with recent bank failures; Neutral Agent says judge rules on merits, not origin.
- Eastern Agent says demanding final text from a draft is a trap; Neutral Agent says the draft should at least float a mechanism, not just a number.
Blind spots
- Nobody asked where the 50-million-yuan number came from or what operating costs it is based on.
- The fee-stacking problem — two layers of fees for the same returns — was raised but never resolved.
- No one discussed how retail investors would actually be protected if a small fund fails.
- The role of incumbents in shaping the rules was mentioned but not fully explored.
WorldAttention’s read
The roundtable agrees the proposal to lower the fund launch threshold is a step in the right direction, but it is structurally incomplete. The biggest gap is the lack of a wind-down mechanism for failed small managers, which could end up helping big firms instead of increasing competition. The 50-million-yuan number has no clear basis, and the draft says nothing about protecting retail investors. The final rules must include segregated custody and a pre-funded liquidation pool before the entry floor is lowered. Otherwise, the door opens but the exit stays locked, and the giants catch what falls through.
Reporting timeline
China Securities Regulator Proposes Loosening Fund Investment Rules
The China Securities Regulatory Commission has released draft amendments to the Administrative Measures for the Operation of Publicly Offered Securities Investment Funds and supporting rules for public comment. The proposals include raising the cap on non-FOF fund investments in other funds from 10% to 30%, allowing FOFs to invest in ETF feeder funds, and lowering the minimum establishment threshold for FOFs to 50 million yuan. Industry participants describe the measures as tailored deregulation for asset-allocation products, which would broaden strategy options and improve portfolio allocation efficiency. They expect public fund managers to place greater emphasis on multi-asset portfolio management, with FOFs and "fixed-income plus" products becoming key competitive areas.
Wanlian Securities: China's Public Fund Rules Overhaul to Boost Equity Fund Flexibility
Wanlian Securities released a research note on the securities industry, stating that on October 9, 2026, the China Securities Regulatory Commission (CSRC) began soliciting public comments on revised public fund operation management measures and supporting rules. This marks the first systematic revision in 12 years. The proposed changes would lower the establishment threshold for equity funds and funds of funds (FOFs) to 50 million yuan or units, optimize index fund regulation, strengthen counter-cyclical and style-stability requirements, and improve large subscription/redemption management and mini-fund exit mechanisms. The report argues that equity fund development space and operational flexibility are expected to rise, public funds may supply equity capital more steadily, and securities firms could benefit from product expansion and distribution growth. It recommends focusing on leading public fund managers, ETFs, and securities firms with strong buy-side advisory capabilities.
Read sourceChina Securities Regulatory Commission Seeks Public Comment on Revised Public Fund Management Rules
On October 9, the China Securities Regulatory Commission (CSRC) released a revised draft of the Publicly Offered Securities Investment Fund Operation Management Measures and supporting rules for public comment. This marks the first systematic revision since the current measures were issued in 2014. Industry insiders stated that the revision emphasizes developing equity products, broadening public fund innovation space, improving fund governance efficiency, and strengthening investor priority, serving as a key institutional arrangement for implementing the Action Plan for Promoting High-Quality Development of Public Funds. Interviewed fund companies expressed their commitment to using this opportunity to integrate an investor-centric approach into investment management, product operations, and customer service, jointly promoting high-quality development of the public fund industry and contributing to the stable and long-term growth of the capital market.
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China Securities Regulator Proposes Lowering Equity Fund Launch Threshold to 50 Million Yuan
On October 9, the China Securities Regulatory Commission (CSRC) released a draft revision of the 'Public Offering of Securities Investment Fund Operation Management Measures' for public comment. The proposed changes aim to support the development of equity funds by lowering the minimum establishment threshold for equity funds and fund-of-funds (FOF) products from the current 2 billion yuan (or 200 million shares) to 50 million yuan (or 50 million shares). The threshold for fixed-income funds would remain unchanged. This regulatory adjustment is intended to make it easier for smaller fund managers to launch equity-focused products, potentially increasing market competition and investor choice in the Chinese fund industry.
China Securities Regulator Proposes Revised Rules for Publicly Offered Securities Investment Funds
On October 9, the China Securities Regulatory Commission (CSRC) released a draft revision of the 'Publicly Offered Securities Investment Fund Operation Management Measures' and related rules for public consultation. The proposed amendments focus on three key areas: first, strengthening fund investment operation supervision and clarifying fund manager responsibilities to address existing issues; second, supporting the development of equity-oriented funds by improving their investment operation arrangements, creating space for product innovation, and facilitating the introduction of more medium- to long-term capital; third, optimizing certain regulatory indicators and mechanisms to increase fund operation flexibility. The CSRC is seeking public feedback on the draft rules, which aim to enhance the regulatory framework for China's mutual fund industry.