{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,10,24]],"date-time":"2026-10-24T03:41:23Z","timestamp":1792813283864,"version":"4.5.0"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":38,"publisher":"Elsevier BV","license":[{"start":{"date-parts":[[2026,1,1]],"date-time":"2026-01-01T00:00:00Z","timestamp":1767225600000},"content-version":"unspecified","delay-in-days":0,"URL":"https:\/\/www.uspto.gov\/ip-policy\/copyright-policy\/copyright-basics"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>Regulatory thresholds need not produce the directional trading their statutory language implies, because institutions can change the category governing the portfolio. We study China's 2014 rule defining a stock fund as one holding at least 80% of assets in stocks. Stock-to-hybrid conversions bunch at the transition deadline; all 106 recovered numerical equity-range pairs remain unchanged, although this selected evidence does not certify every contract. Contractual mismatch is associated with 0.615 higher semiannual gross turnover and an independently measured 18.54-basis-point transaction-expense increase during the transition, with net purchases indistinguishable from zero. The turnover preperiod is not flat, and its causal magnitude is sensitive to the largest preperiod differential movement. Separately, a larger capped baseline realized stock-weight shortfall predicts lower quarterly investor flows; it is not a contractual-gap estimate. A partial-equilibrium model describes trade-offs among category flexibility, directional demand, adjustment activity, and risk capacity. Under fixed portfolios and assets, prohibiting reclassification implies a mechanical minimum of RMB 17.25 billion in purchases, not an identified realized saving or welfare ranking. \n&lt;div&gt;\n &lt;br&gt;\n&lt;\/div&gt;\n&lt;div&gt;\n Generative-AI disclosure: OpenAI generative-AI tools and another large language model assisted with data inspection and rebuilding, statistical programming and estimation, manuscript audits, evidence organization, reference checks, document construction, and language editing. OpenAI Codex also assisted with mathematical typesetting for the submission copy. A detailed disclosure appears in the manuscript. The author remains responsible for the manuscript and submitted version.\n&lt;\/div&gt;<\/jats:p>","DOI":"10.2139\/ssrn.7559159","type":"posted-content","created":{"date-parts":[[2026,10,5]],"date-time":"2026-10-05T18:22:52Z","timestamp":1791224572000},"source":"Crossref","is-referenced-by-count":0,"title":["Endogenous Compliance with Portfolio Regulation"],"prefix":"10.2139","author":[{"given":"George","family":"Xiang","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","reference":[{"issue":"3","key":"ref1","doi-asserted-by":"crossref","DOI":"10.1016\/j.jfi.2008.12.002","article-title":"Liquidity and leverage","volume":"19","author":"T Adrian","year":"2010","journal-title":"Journal of Financial Intermediation"},{"issue":"11","key":"ref2","doi-asserted-by":"crossref","first-page":"3133","DOI":"10.1093\/rfs\/hhu045","article-title":"Window dressing in mutual funds","volume":"27","author":"V 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