China’s CSRC seeks views on public funds fees

China’s CSRC seeks views on public funds fees

The China Securities Regulatory Commission (CSRC) has recently initiated a public consultation process to gather views on potential changes to the fees associated with public funds. The move comes amidst growing scrutiny over the financial infrastructure and regulatory environment in China, as well as the broader shift towards digital assets and Web3 technologies.

The CSRC's consultation aims to align the fees with international best practices and enhance the regulatory framework. This initiative is part of a broader effort by the Chinese government to strengthen financial stability and promote market openness. The consultation period will run until October 1, 2025, providing ample time for stakeholders to submit their feedback [1].

The new regulatory measures, which took effect on October 1, 2025, have significantly expanded the scope of entities subject to regulatory oversight. Financial Market Infrastructures (FMIs), including financial assets registries, depositories, clearing and settlement systems, and trade execution facilities, are now subject to enhanced scrutiny [2]. This broadened regulatory framework is intended to promote transparency, enhance risk management, and reinforce corporate governance standards.

The consultation on public funds fees is expected to address the following key areas:
1. Feasibility and Impact: Assessing the potential impact of fee adjustments on market participants and the overall financial ecosystem.
2. Alignment with International Standards: Ensuring that any changes to fees align with international best practices and principles for financial market infrastructures.
3. Risk Management: Evaluating how fee adjustments might affect risk management practices and financial stability.
4. Operational Efficiency: Considering how fee adjustments can improve operational efficiency and reduce administrative burdens.

The CSRC's consultation process is a significant step towards modernizing China's financial regulatory framework. By gathering input from a wide range of stakeholders, including financial institutions, investors, and market participants, the CSRC aims to create a more robust and efficient regulatory environment. This, in turn, will help China maintain its position as a leading global financial hub and facilitate the growth of digital assets and Web3 technologies.

References:
[1] https://www.kwm.com/hk/en/insights/latest-thinking/fmi-update-navigating-chinas-new-financial-infrastructure-measures.html
[2] https://beincrypto.com/chinas-former-mna-king-bets-its-future-on-crypto/