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CSRC to Cut Investment Costs of Index Funds, Actively Develop Equity ETFs
Recommend 14 Positive 17 Negative 3 |
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The China Securities Regulatory Commission (CSRC) issued the Action Plan for Promoting High Quality Development of Capital Market Indexing Investment, with the objectives of promoting a significant increase in the scale and proportion of capital market indexing investment, accelerating the construction of a new development pattern where active and passive investment in the publicly offered fund industry are developed in tandem and facilitate mutual advancement; strengthening the asset allocation function of index funds, steadily enhancing investors' long-term returns, and providing a more convenient channel for the entry of medium- and long-term capital into the market, so as to help build a “long-term investment of long-term money” ecosystem in the capital market and strengthen the rational and mature medium- and long-term investment power. The CSRC will establish a rapid registration mechanism for equity ETFs, with registration completed within 5 working days from the date of acceptance, and implement a coordinated registration arrangement for ETFs and their feeder funds for mature broad-based index products. The plan mentions the active development of equity ETFs, optimizing and strengthening core broad-based equity ETFs, creating an industry flagship ETF product lineup and supporting the registration and issuance of broad-based equity ETFs with high coverage, strong representativeness and good liquidity, so as to better satisfy the demand for medium- and long-term capital allocation. The plan also mentioned the reduction of index fund investment costs. The authority will continue to waive the annual listing fee for ETFs, promote the reduction or waiver of fees for market making, registration and clearing and index usage of ETFs, so as to continue to cut the operating costs of index funds; appropriately and promptly guide industry organizations to drop the management fee rate and custodian fee rate of large-scale broad-based equity ETFs; and change the index license fee of existing index funds from being charged against the fund's property to being borne by the fund managers. AAStocks Financial News |
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