Cailian Press, October 19th news (Reporter Li Di) With the rebound of the stock market, the market's attention to public offering funds is gradually increasing. In this context, many distributing institutions are attracting investors by launching discounted rate activities.

Recently, CM Bank and Bank of Communications announced the start of a one-tenth discount on the buy-in rate of public offering funds. Many public offering funds have also intensively released announcements, stating that they will participate in discounted activities of brokerage firms, third-party distribution platforms, and other institutions.

Industry experts point out that the introduction of discounted rate activities by distributing institutions helps enhance their own competitiveness, attract more customers, and reduce investors' transaction costs. At the same time, this also helps to increase investors' sense of achievement, and reflects that various institutions are actively responding to the policy of public offering fund fee reform.

Two major banks introduce a one-tenth discount on the buy-in rate of public offering funds.

Recently, CM Bank announced that the buy-in rate for purchasing public offering funds distributed by the bank will start at one-tenth across all purchase channels, various fund types, and purchase methods such as subscription/redemption and RSP.

Currently, CM Bank has launched over 12,000 funds, covering index funds, FOF funds, partial bond funds, and other varieties. Earlier, CM Bank President Wang Liang announced at the '2024 Wealth Partner Forum' held on July 18 this year that in the future, CM Bank will implement a one-tenth discount policy on the buy-in rate of retail-distributed public offering funds.

Therefore, the difference this time is that a one-tenth discount on the subscription fee is also applied to products in the initial offering stage.

On October 17, Bank of Communications also announced that buying funds at Bank of Communications, the subscription rate starts at one-tenth.

It is reported that as early as 2020, Bank of Communications had launched the discount activity of 'one-tenth subscription to funds'. In June of this year, Bank of Communications announced that from July 1, 2024 to December 31, 2024, it will continue to offer discounts on subscription and RSP fees for the open-ended funds sold by the bank.

Before the stock market picked up, banks had already launched promotional activities with discounted fund rates.

On July 29, Minsheng Bank announced on its official website that from August 1, 2024 to December 31, 2024, it will offer discounts on transaction fees for certain securities investment funds. During the promotion period, customers can enjoy a one-tenth discount on front-end subscription and RSP fees for purchasing and RSP of the aforementioned fund products through China Minsheng Bank's counter, online banking, and mobile banking channels.

On July 2, Bank of Guizhou announced a one-tenth discount on the subscription and RSP fees of all public fund products it sells. The promotional period is from now until December 31, 2024. The applicable products are all funds sold by Bank of Guizhou in 2024.

Brokerages and third-party platforms are also offering fee discount promotions.

In addition to banks, securities companies, third-party distribution platforms, and other institutions have recently been actively carrying out fee discount promotions. According to incomplete statistics from reporters, at least 41 public funds have announced fee discount promotions for distribution institutions since October.

Regarding securities companies, at least 20 securities companies including China Merchants Securities, Tianfeng Securities, and Sinolink Securities have participated in the fee discount promotions in the public fund companies since October.

Taking China Merchants Securities as an example, on October 18, Chang'an Fund issued a notice on the fee discount activities of some funds participating in the discount activities of China Merchants Securities Co., Ltd. The announcement shows that the Class A shares of 12 funds such as Chang'an Xinli Optimal Flexible Allocation Hybrid Fund will participate in the fund subscription and regular investment fee discount activities launched by China Merchants Securities, and the discount activities will be implemented starting from October 18, 2024.

As for third-party distribution agencies, institutions such as Nanjing Suning Fund Sales, Shanghai Zhongzhida Guang Fund Sales, Dahe Wealth Fund Sales, and Beijing Chuangjin Qifu Fund Sales have participated in the fee discount activities with public fund companies.

On the evening of October 18, Guohai Franklin Fund issued a notice on adding Minshang Fund Sales (Shanghai) Co., Ltd. as a distribution agency for some funds under Guohai Franklin Fund Management Co., Ltd., opening conversion, regular investment, and related fee discount activities. The announcement indicates that the start time of the fee discount activities is October 23, 2024, and the end time will be subject to the announcement of Minshang Fund and can enjoy the fee discount, with the specific discounted rates subject to the Minshang Fund website.

Attracting customers and responding to policies, distribution agencies have sprung into action.

As the stock market warms up, distribution agencies in the fund industry have launched fee discount activities, which are expected to attract more investors to enter the market. At the same time, this also helps distribution agencies enhance their own competitiveness, better compete for customer resources, and expand their market share.

Some industry insiders told reporters that despite the stock market rebounding, the pressure on public fund distribution agencies has not eased. "Previously worried about not being able to sell funds, now worried about not being able to compete for customers with other institutions. Therefore, various distribution agencies have taken the initiative to lower fees to attract investors. Major institutions have aggressively lowered fees, and '1% discount' is a very common promotional method."

In addition, the intensive launch of various fee discount activities also reflects that various institutions are actively responding to regulatory policies. Earlier, the CSRC initiated a fee reform in the public fund industry in July 2023, and the first two phases have been completed. The third phase is expected to be completed by the end of this year. In the third phase, the CSRC will focus on regulating fees in the sales process. The fee discount activities directly reduce the fees in the sales process of public funds, helping to lower investors' transaction costs directly and enhance investors' sense of accomplishment.