China’s securities regulator has released draft rules aimed at reducing trading commissions for mutual funds and addressing the conflict of interest between brokerages’ securities trading and fund sales businesses. These proposed rules are part of ongoing reforms in the $3.8 trillion mutual fund industry, with the goal of protecting investors and improving the regulation of trading commission allocation by fund managers.
The China Securities Regulatory Commission (CSRC) published the draft rules for public consultation on Friday, following its previous call for mutual funds to lower management fees and reduce costs for investors. This latest move is seen as an effort to restore confidence in the sluggish stock market.
Industry analysts believe that these new rules will particularly benefit brokerages with strong trading and research capabilities, as they stand to win more commissions.
Under the draft rules, both passive and active fund products would see a reduction in trading commissions. SWS Research estimates…
2023-12-09 22:56:17
Link from finance.yahoo.com