China’s securities regulator cut stock mutual funds’ management fees and vowed to push more institutional investors to raise equity allocations through funds, stepping up efforts to boost the market.

Newly-registered active equity funds can’t charge more than 1.2% for the management fee or a 0.2% for a custodian fee, the official China Securities Journal reported Saturday, citing a work plan by the China Securities Regulatory Commission.

The regulator will also seek to cut fund firms’ trading commissions later this year and coordinate with other ministries to direct more funding from investment institutions, it said.

New fundraisings have slumped in recent months as stock market declines and a weak economic recovery erode sentiment among investors already frustrated about high costs and poor returns.

Mutual funds raised about 410 billion yuan ($57 billion) this year through May 25, less than one third of the amount in the first five months of 2021, with the percentage of stock-related products slumping by about half to 42%, according to Morningstar Inc. data.

The CSRC supports fund firms and other institutions in the industry to “reasonably” lower fees, it said in a statement on its website without providing details. A more optimized fee mechanism can ensure the industry’s development and investor interests are “more in line, mutually supported and achieved together.”

Leading firms including E Fund Management Co. and China Asset Management Co. cut management fees to the new ceiling from 1.5% for most products, and lowered custodian fees from mostly 0.25%, effective July 10, statements on their websites showed. Other existing product fees will be compliant be the end of this year, the newspaper said.

While China’s active stock funds have a “relatively high” fee level, the reductions will bring the actual cost below that in comparable overseas markets, the report said, adding advisory fees were as much as 1.2% in some other countries.

Regulators also plan to revise rules on levies charged by distributors, including fund subscription, redemption fees and their cut of management fees, and seek to complete such work by the end of next year, according to the report.

In addition to the fee reform, the CSRC is also studying an action plan to improve the tax, performance valuation and accounting policies for long-term institutional investors such as insurance, wealth management and pension funds to lift their equity investments, the report said, without giving details.