China proposes 50% pay cuts for underperforming fund managers

China's securities regulator plans to cut pay by up to 50% for mutual fund managers who underperform. This proposal aims to restore investor trust and improve fund performance amid a struggling stock market and economic slowdown. The new rules would prioritize fund returns in evaluating managers, reducing the importance of traditional metrics. Regulators are also considering faster approvals for equity-focused products and preferential treatment for funds with lower fees and longer investment horizons. Despite these efforts, active equity funds have underperformed, with average returns of just 4% last year compared to a 15% gain in the CSI 300 Index. The proposed changes reflect ongoing pressure for reform in China's $4.6 trillion mutual fund industry.