BEIJING — China is preparing to significantly reduce subscription and sales-related fees across its $4.9 trillion mutual fund industry, in a move aimed at lowering investor costs and promoting long-term capital allocation.
The initiative, led by financial regulators, reflects growing concern over short-term trading behavior and aims to reshape retail investment culture. By slashing front-end charges and distribution commissions, authorities hope to improve fund transparency and align incentives with long-term performance.
China’s mutual fund market has expanded rapidly in recent years, driven by retail participation and digital platforms. However, high fee structures have drawn criticism for eroding returns and discouraging sustained investment.
The proposed reforms are part of broader efforts to modernize China’s asset management sector, enhance investor protection, and support capital market stability. Implementation details are expected to be finalized in the coming months.
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