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China Securities Regulator Proposes Loosening Fund Investment Rules: Non-FOF Fund-of-Funds Cap to Rise to 30%, FOF Launch Threshold Cut to 50 Million Yuan
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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.
Source report
Recently, the CSRC solicited public opinions on the Administrative Measures for the Operation of Publicly Offered Securities Investment Funds (Draft for Comment) and supporting rules. Among them, several deregulatory provisions concerning the investment scope of funds have drawn industry attention, including a proposed increase in the upper limit for non-FOF products' investment in other funds from 10% to 30%, and allowing FOFs to invest in ETF feeder funds. In addition, the threshold for establishing a FOF is proposed to be lowered to 50 million yuan. Industry insiders view this as a set of rules "tailor-made" for asset allocation products, and FOFs and "fixed income plus" products, which naturally possess asset allocation attributes, will be an important direction of competition among public fund institutions. (China Securities Journal)
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domesticNeutral / independent
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China CSRC Proposes Cutting Equity Fund Launch Threshold to 50 Million Yuan