Cathay Pacific Haitong: System optimization and improvement to promote the shift of public funds from scale expansion to quality improvement

The Zhitong Finance App learned that Cathay Pacific Haitong released a research report saying that on October 9, 2026, the China Securities Regulatory Commission revised the “Administrative Measures on the Operation of Publicly Raised Securities Investment Funds” and supporting rules to form the “Administrative Measures on the Operation of Publicly Raised Securities Investment Funds (Draft for Comments)” and supporting rules. The bank summarized the core changes into five dimensions. This revision runs through the entire product life cycle, investment operation process, and governance and accountability chain, and all point to the same goal: to move public funds from scale expansion to quality improvement in the context of the industry having expanded several times.

Cathay Pacific Haitong's main views are as follows:

Change 1: The establishment threshold classification has been lowered, and withdrawal is smoother. The distribution side lowered the establishment threshold, lowered the starting cost of new products, and suppressed disorderly expansion with countercyclical layout requirements; the exit side raised the survival threshold for some products, internalized operating costs, and simplified exit procedures, making the exit channel truly smooth. In the short term, the pace of liquidation of some products may accelerate accordingly; in the long run, fund managers' product layouts will focus more on products that have a foundation for continuous operation and are expected to grow in scale. This shift actually guides the product capabilities accumulated by the industry in the past in a more precise direction. This is not about limiting supply; it is about making supply more efficient.

Change 2: Product types are richer, and restrictions on investment instruments are relaxed. This revision is progressing simultaneously on two dimensions: adding on the product type side, expanding fund categories, refining operating methods, and easing income distribution and rate restrictions; on the investment instrument side, subtracting to exempt passive investment from shareholding restrictions, raising the upper limit of the proportion of funds holding other funds, and broadening the scope of eligible liquid assets. The former enriches the supply of products, while the latter enhances the efficiency of portfolio management.

Change 3: Improve equity fund investment and operation arrangements, strengthen contractual restrictions, and return investment behavior to its roots. Standardize the operation of equity funds from three aspects: the first is to strengthen contractual restrictions and full-process management for funds whose names indicate the direction of investment; the second is to strengthen diversification requirements for funds whose names do not indicate a specific industry or subject; and the third is to elevate the performance comparison benchmark from the general terms of the contract to an institutional arrangement subject to a full-process management mechanism. The bank believes that after contractual restrictions are strengthened, active management will return to its roots and rely on stock selection and portfolio management to create sustainable excess profits.

Change 4: Put investor protection into practice. This round of revisions adds the principle statement of “adhering to investors' interests and abiding by fiduciary obligations” to the general provisions. The implementation mainly follows two dimensions: first, strengthening debt-side management, adding shareholder structure management requirements, and setting corresponding restrictions on the three types of phenomena of customized institutional arrangements, dividend-sensitive arbitrage, and differentiated redemption to ensure the smooth operation of the fund; the second is to optimize the allocation of management resources, making it clear that fund managers can also manage public funds, pension portfolios, and private equity asset management plans, so that more high-quality investors can share and share plans. throw Research resources.

Change 5: Participatory governance and accountability are being strengthened simultaneously, and the industry ecosystem is healthier. This round of revisions clearly requires managers to play an active shareholder role. The bank believes that participating in the governance of listed companies and actively playing the role of shareholders is not only due diligence, but also a professional advantage of public funds. Investment, research and management are expected to form a positive cycle, thereby promoting the development of the industrial ecosystem in a healthier direction.

Summary: This revision runs through the entire product life cycle, investment operation process, and governance accountability chain. They all point to the same goal: to move public funds from scale expansion to quality improvement in the context of the industry having expanded several times. Supply is more efficient, operation is more standardized, and investors' interests are more guaranteed. Governance forms a positive cycle, and the four parties work together to achieve simultaneous improvement in the ability to serve the real economy and residents' financial management needs.

Risk Warning: This report is an objective analysis and interpretation of the “Administrative Measures on the Operation of Publicly Raised Securities Investment Funds (Draft for Comments)” and does not constitute investment advice.