FINANCE

China Ties Fund Pay to Long-Term Returns in Industry Overhaul

Published: Apr. 18, 2026 12:28 a.m. GMT+8

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The Asset Management Association of China on Friday released the revised Guidelines for Performance Evaluation of Fund Management Companies.

China’s asset management regulator has issued finalized rules that force mutual fund managers and executives to tie their compensation directly to long-term investor returns rather than the scale of assets they manage.

The Asset Management Association of China released the revised Guidelines for Performance Evaluation of Fund Management Companies on Friday. The official document remains largely unchanged from a draft circulated in late 2025.

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China's AMAC finalized guidelines tying fund managers' and executives' pay to long-term investor returns, not assets managed.
Active equity managers face ≥30% pay cuts for underperforming benchmark by >10% pts; must reinvest ≥40% performance pay in funds.
Mandates ≥3-year deferrals (≥40% for seniors), ≥80% medium-long-term metrics, indefinite clawbacks, and dividend cuts for poor firm performance.

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