Chinese mutual fund assets nearly doubled last year to a record high of Rmb8.4 trillion ($1.3 trillion), driven largely by money-market products, which analysts say have stabilised the industry.
The CSRC plans to widen money market funds' investment scope in an attempt to encourage innovation. The regulator also wants fund managers to put more emphasis on risk management.
Chinese phone manufacturer Xiaomi aims to expand into equity index funds after launching its first mobile money market fund this week. It comes after several years of explosive growth in the sector, led by Alibaba.
ICBC-Credit Suisse AM is readying an RQFII money-market fund in Hong Kong this year as it sees a gap in the market. Nevertheless, copycat products are not expected to proliferate.
The meteoric growth of money-market funds in China has slowed and last week's rate cut could dampen that further. Nevertheless observers expect MMFs to remain dominant.