Industry observers believe asset owners could increasingly turn to low fee passive funds and potentially back off from risky vehicles if new fund rules are introduced next year.
The Chinese financial regulator eased the rules around insurance asset management products, which should hasten their issuance and raise their appeal with other investors.
A new set of rules from the CBIRC will enlarge the investor base for insurance asset management products. This could ramp up investor demand.
Artificial intelligence could revolutionise actively managed funds, but it cannot expand until regulators accept them and they build multi-year track records, say advocates.
As Beijing seeks to expand its pension system it will need to find ways to simplify how the system is managed, instead of maintaining the set of watchdogs that currently have a say.
It is one of several new rules outlined in a consultation paper that expands the scope of these products to high-net-worth individuals and could increase competition among private funds.