China Securities Regulatory Commission issues public fund performance benchmark guidelines, effective March 1 2026

The China Securities Regulatory Commission has issued guidelines on the selection and use of performance benchmarks for publicly offered securities investment funds. The measure is designed to ensure benchmarks accurately reflect a fund’s investment style, serve as a meaningful constraint on portfolio management and a basis for measuring performance, while strengthening fund managers’ internal controls and investor protection. It takes effect on March 1, 2026. The guidelines require a fund’s performance benchmark to match the core elements set out in the fund contract and the product’s investment style, and state that once selected it should not be changed arbitrarily. They also place responsibility for benchmark decisions at the company management level and require fund managers to establish sound internal control and management systems, including ongoing oversight of fund managers and the stability of product investment styles. External constraints are tightened by defining supervisory duties for fund custodians, regulating how fund distributors and fund rating agencies present and use benchmarks, and requiring fund managers and distributors to strengthen investor education. The China Securities Regulatory Commission and its local offices will take action against violations by fund managers, custodians, distributors, rating agencies and relevant personnel. The commission said it had previously consulted the market on the guidelines, received broad support alongside specific amendment suggestions, and revised the final text after reviewing the feedback. It said the next step will be to carry out implementation of the guidelines.