CSRC Released “Action Plan for Promoting the High-Quality Development of Index-Based Investment in the Capital Market”

On January 26, 2025, the China Securities Regulatory Commission (CSRC) released the “Action Plan for Promoting the High - quality Development of Index - based Investment in the Capital Market” (the “Action Plan”), effective immediately. The Action Plan put forward relevant measures in aspects such as continuously enriching the index fund product system, accelerating the optimization of the development ecosystem of index-based investment, strengthening supervision, and preventing risks.

The Action Plan proposed to optimize the registration and issuance arrangements for Exchange-Traded Funds (ETFs). This includes establishing a fast-track registration mechanism for stock ETFs, implementing coordinated registration of ETFs and their feeder funds for mature broad - based index products, and continuously improving the counter-cyclical adjustment mechanism for ETF registration. It also aims to comprehensively improve the ETF operation mechanism. A comprehensive assessment will be carried out to revise and improve the operation mechanism covering all aspects of ETF issuance, listing, trading, market - making, delisting, and information disclosure. Specific measures include promptly promoting the transformation of the full-physical subscription and redemption model for cross-market ETFs, prudently studying and promoting the launch of the Broad-based ETF Connect platform, normalizing the ETF aggregated subscription business, and clarifying the regulatory requirements for ETF products regarding short - term trading, share reduction, and stake-holding disclosure.