China firms cut fees as regulator targets US$3.7 trillion sector

FILE PHOTO: A Chinese national flag flutters outside the China Securities Regulatory Commission (CSRC) building on the Financial Street in Beijing, China July 9, 2021. REUTERS/Tingshu Wang/File Photo

SHANGHAI: More than a dozen major mutual fund companies in China cut fees in roughly 1,500 fund products on Monday as regulators started reforming fee practices in the US$3.7 trillion (RM17.3 trillion) industry in an effort to reduce costs to investors.

The money managers, including China Asset Management Co and Bank of Communications Schroder Fund Management Co, said in separate statements that management fees in certain equity-focused products would be cut to 1.2% of fund assets from 1.5% previously. The custodian fee would be reduced to 0.2% of assets from 0.25%.