New regulations in Guangdong put an end to the government investment fund manager's "no loss guarantee" model.

A new policy issued by the Guangdong Provincial Department of Finance has put an end to the model where local government investment fund managers could always profit from management fees. The new regulations regarding management fees for local government investment funds, as announced recently by the Guangdong Provincial Department of Finance, have attracted attention from the public. According to the regulations, management fees for local government investment funds must be paid from fund profits or interest, and are not allowed to come from the principal. If the fund has not generated any profits or interest, the fees may be advanced from the principal, but must be reimbursed once the fund starts generating profits or interest.