China Securities Regulatory Commission releases "Guidelines for the Performance Benchmark of Publicly Offered Securities Investment Funds"

On January 23, the China Securities Regulatory Commission issued the "Guidelines for Performance Comparison Benchmark of Publicly Offered Securities Investment Funds," which will take effect from March 1, 2026. The "Guidelines" consist of six chapters and twenty-one articles, with the main content including: 1. Emphasizing the representation role of performance comparison benchmarks, highlighting the seriousness and stability of their application. It is clear that the performance comparison benchmark should match with the core elements and product investment style as stipulated in the fund contract and should not be changed arbitrarily once selected. 2. Strengthening the internal control and management of fund managers. It is specified that the performance comparison benchmark should be determined by the company's management, and fund managers should establish sound internal control mechanisms and management systems to enhance the continuous management of fund managers and the stability of the fund's product investment style. 3. Strengthening external constraints on performance comparison benchmarks. It is clarified that the fund custodian has supervisory responsibilities, and regulations on the display and use of performance comparison benchmarks by fund sales institutions and fund evaluation agencies are required. Fund managers and fund sales organizations are required to carry out investor education work. Additionally, strict supervision is mentioned, where the China Securities Regulatory Commission and its agencies will handle illegal activities of fund managers, fund custodians, fund sales organizations, fund evaluation agencies, and employees according to the law. The guidelines cover various aspects related to the selection, use, and management of performance comparison benchmarks for publicly offered securities investment funds. It emphasizes the importance of transparency, objectivity, and consistency in the selection and use of these benchmarks, aiming to protect investors' interests and improve the overall management of investment funds.