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 (CSRC) released the “Guidelines for Performance Comparison Benchmarks of Publicly Offered Securities Investment Funds.”

To implement the Action Plan for Promoting the High-Quality Development of Public Funds, adhere to an investor-centered approach, regulate the selection and use of performance comparison benchmarks for publicly offered securities investment funds, and ensure these benchmarks effectively serve functions 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’ lawful rights and interests, the CSRC has formulated the “Guidelines for Performance Comparison 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, highlighting the representational role of the performance comparison benchmark, and emphasizing the seriousness and stability of how the benchmark is applied. It specifies that the performance comparison benchmark shall be matched with 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, strengthening the fund manager’s internal control and management. It clarifies that the performance comparison benchmark should be determined by the company’s management, and that the fund manager shall establish and improve internal control mechanisms and a management system, and enhance ongoing management of fund managers and the stability of the investment style of fund products. Third, strengthening external constraints on the performance comparison benchmark. It clarifies the supervisory duties of the fund custodian, standardizes the behaviors of fund distribution institutions and fund evaluation institutions regarding the display and use of performance comparison benchmarks, and requires the fund manager and fund distribution institutions to do a good job in investor education and related work. Fourth, strict regulation. The CSRC and its dispatched offices, in accordance with law, handle illegal 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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