China CSRC Proposes Scrapping Rule Forcing Small Sponsored Funds to Close

The proposal swaps a rigid three-year cliff for a structural trade-off: managers can keep small sponsored funds alive, but only by absorbing fixed operating costs, while a separate mandatory exit mechanism still looms for the smallest vehicles. That shifts the burden from a calendar deadline to an economic one, which could reshape launch economics for sponsors and concentrate the mini-fund segment among managers willing to subsidize scale. Whether the exit threshold is set tightly enough to prevent a stranded tail of sub-scale products is the open question.