Beijing has fixed the minimum capital requirement for venture-capital funds.
A member of the committee drafting venture-capital laws said a fund must consist of more than two but fewer than 50 investors, with each investing at least one million yuan (about HK$937,000), according to China Securities.
Venture-capital funds, aimed at helping fledgling high-technology companies take off, will be able to raise money only from private investors.
They will be prohibited from sourcing money from the general public.
The committee's representative, Cao Fengqi, said venture-capital funds would be restricted to private investors because it wanted to protect ordinary investors from high-risk exposure.
The funds will have to declare the sectors in which they are going to invest.
