Public funds ushered in a “wave of calibration” of product risk levels. On June 12, the China Securities Investment Fund Industry Association issued the “Administrative Rules on the Appropriateness of Publicly Raised Securities Investment Fund Investors”. Fund managers and fund sales agencies must improve the fund risk rating system and complete related system reforms as required within 6 months from the date of publication of the rules. Subsequently, a number of public equity firms and banks intensively adjusted the risk levels of funds. Industry insiders believe that as the evaluation dimension shifts from “classification rating” to “multi-dimensional weighting,” medium risk funds are “upgraded” in batches to medium to high risk, but problems such as inconsistent risk ratings, “pressure rating” impulses, and emphasis on form over substance have yet to be solved. In the future, financial institutions should work together to find a way to break the game, and strive to make “proper management” truly run through the entire process of accompanying investors, from formal compliance to substantive penetration.

Public funds ushered in a “wave of calibration” of product risk levels. On June 12, the China Securities Investment Fund Industry Association issued the “Administrative Rules on the Appropriateness of Publicly Raised Securities Investment Fund Investors”. Fund managers and fund sales agencies must improve the fund risk rating system and complete related system reforms as required within 6 months from the date of publication of the rules. Subsequently, a number of public equity firms and banks intensively adjusted the risk levels of funds. Industry insiders believe that as the evaluation dimension shifts from “classification rating” to “multi-dimensional weighting,” medium risk funds are “upgraded” in batches to medium to high risk, but problems such as inconsistent risk ratings, “pressure rating” impulses, and emphasis on form over substance have yet to be solved. In the future, financial institutions should work together to find a way to break the game, and strive to make “proper management” truly run through the entire process of accompanying investors, from formal compliance to substantive penetration.