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In Depth: China’s Mutual Fund Industry Faces Overhaul After a Banner 2025

By Yue Yue and Quan Yue
2026年02月24日 12:44
Proposed regulations aim to force a shift from prioritizing scale over returns, challenging an entrenched strategy that has often come at the expense of long-term investor interests
China has unveiled draft rules to tie mutual fund managers’ bonuses to long-term results and curtail the hype around star managers.

After several difficult years for many Chinese investors, 2025 delivered a surge in mutual fund returns. The industry’s scale swelled to above 37 trillion yuan ($5.4 trillion) and, in a technology-led bull market, nearly 95% of funds operating for the full year reported returns.

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