Chinese active funds supply new products after dramatic industrial reforms

Samuel Shen and Vidya Ranganathan

Shanghai / Singapore (Reuters) New Rules for Active Funds, the country has opened this month, and the largest players were activated in the industry and presented fresh products.

Chinese active management (China merchants and E Foundation and E Foundation are applied to apply to apply to the implementation of or soon payments to the implementation of investment in the implementation of investments.

Changeable-paid investment products – Currently, in China to adapt the interests of the fund managers more closely. If a fund is done and falls well and falls if it falls, payments may rise.

New rules with the words of the Chinese Securities Regulatory Commission in order to promote the long-term value investment in the Buffett style, represent the largest overhaul of China’s 4.5 trillion interactions in decades.

Chinese active funds have long been criticized to focus on short-term investments rather than obtaining and focus on performance and create long-term value.

“Previously, many mutual fund managers put their interests ahead of investors … contribute to irrational market waves,” said Dong Baozhen, Beijing-based active manager Lingtong Shengtai.

In addition to the application of variable-payment structures, a large salary cuts for portfolio managers who receive a 10 percent point or more prices in a three-year period.

“It’s a fund manager to switch to a better benchmark …. or” wish “to build a portfolio in a better way.

High salaries in the funds and China’s extensive world of business have been a while, officials have started a raider in accordance with the “General Welfare” driver of President Xi Jinping. Some fund managers began to receive an annual income and take over the over-the-year-free salary.

According to the new rules, the success of a fund will no longer take place by profit or assets under management, but with its performance and satisfaction.

Lingtong Shengtai’s Dong, waiting for the new rules, “Banks are focused on heavy weights, in the stock flow, the stock flow,” he said.

The banks make up at the end of the first quarter, the lowest level of 300% of 300%.