SFC Officials: The New Fund Law Will Reduce Shareholder Entry Threshold.

In the third China fund industry summit held here, Hong Lei pointed out that the legal framework determined by China's current fund law is different from the mature market, and adopts the fund legal system jointly entrusted by managers and trustees. Meanwhile, it has set a higher threshold for fund management companies' stock East.

Hong Lei said that with the continuous development of the fund industry, the current "fund law" has been difficult to fully adapt to the new fund company's organizational structure and the needs of the development of equity policy. The company lacks the power and vitality of long-term stable development. The current corporate governance system can not effectively balance the interests of fund holders, employees and shareholders, and it is difficult for fund holders to get effective implementation of efficiency priority.

Hong Lei said that because of economic interests, shareholders often ignore the interests of investors and do not fully consider the rational demands of the company management team.

Executives and other employees do not see long-term development goals and lack self-discipline.

Therefore, we should promote the revision of the fund law, actively explore various forms of fund manager organization mode, constantly improve the equity policy of fund management companies, and form a diversified shareholding structure, which is the main direction of development in the next stage.

Hong Lei said.

Hong Lei revealed that in the new fund law, the rights of fund holders' meetings will be implemented, and the threshold of fund holders' meetings will be lowered, so that holders can play a real role in the process of fund management.

In addition, we should explore the establishment of a corporate fund to improve the incentive and restraint mechanism of investors for fund managers.

In the examination and approval of fund management companies, regulators should relax the conditions of shareholders' access and promote competition, focusing on the integrity records and professional resume of shareholders and senior executives.

Hong Lei also said that in addition to actively promoting the revision of the fund law, regulators will continue to strengthen investment regulation of fund companies and redraw the fair trading system of funds.

He pointed out that before the regulators focused on the "rat farm" phenomenon, the next regulatory focus will be on improving fair trade and preventing the pfer of interests, further revising the guiding principles for fair trading system, making clear the monitoring principles of different portfolios in dealing with pactions and reversing pactions, and improving fair trade regulation, so that fair pactions can be monitored and verifiable.

Hong Lei said that "straightening out the mechanism, people-oriented, scientific development, deregulation and strengthening supervision" has become the next step for the regulatory authorities.