The Shenzhen Stock Exchange ("SZSE") has recently issued the Service Guidelines of the Shenzhen Stock Exchange for Fund Product Development and Innovation (Revised in 2019) (the "Guidelines"), immediately effective from the date of issuance.
The Guidelines clarify relevant requirements that fund managers shall fulfill to apply for developing fund products and that fund products to be developed by fund managers shall meet, as well as the documents that shall be submitted. Further, the Guidelines state that, in principle, several fund managers are allowed to develop fund products that track an identical index. A fund product to be developed by a fund manager may be granted protection for a proper period of time, if it is considered a significant innovation or strategically important to the development of the fund market. In addition, the Guidelines read that, measures will be taken to encourage and support fund managers to pursue product innovation and assist them in conducting relevant preparatory work, in a bid to jointly push for the innovative development of the fund sector. In principle, the fund manager applying for developing an innovative product shall have over one year of experience in operating regular products.