China Proposes Scrapping 3-Year, 200M Yuan Delisting Rule for Sponsored Funds

This is a meaningful shift in how China regulates fund viability: removing the hard three-year, 200 million yuan liquidation trigger for sponsored funds lowers the structural risk of forced exits and aligns their treatment with ordinary funds, which matters most for the managers and investors in the more than 100 sponsored funds launched in 2023. The cost-bearing condition for mini funds also shifts the economics of keeping small products alive onto the manager rather than the fund. The open question is whether the draft survives in this form and whether managers use the flexibility to preserve products or wind them down voluntarily.