CSRC Approves Actively Managed ETFs in China, Cuts Fees up to 70%

China’s securities regulator, the China Securities Regulatory Commission (CSRC), has approved actively managed exchange-traded funds (ETFs). This unlocks a new ETF structure for mainland China: fund managers can build portfolios using their own research and market views, rather than being anchored to a benchmark. Until now, Chinese ETF providers were limited to enhanced index ETFs, which cap tracking error to within 20% of their benchmark indices. The approval therefore removes that constraint and aligns China more closely with markets in the US and Europe, where actively managed ETFs have expanded rapidly. The CSRC also approved up to 17 ETFs in a single day and introduced major fee reforms, with reductions reaching as much as 70%. Lower ongoing costs are expected to make ETFs more competitive versus traditional mutual funds and appeal to retail investors who are price-sensitive. US firms have already been positioning for this shift. JPMorgan Asset Management and State Street had previously signaled that policy support for fully actively managed ETFs was likely in 2026. With this distribution channel now available in China, international asset managers with deep active-management capabilities gain a broader route to launch and scale strategies. For investors, the key change is that actively managed ETFs in China are no longer tightly tied to benchmark indices, while the regulator simultaneously pushes down fees—two factors that could reshape product demand and fund flows over time.