Threshold for fundraising may be lowered

China's securities regulator planned to lower the threshold for fundraising and eased conditions for fund products in preparation for the launch of new financial instruments, official from the top watchdog said on May 4.

The China Securities Regulatory Commission is studying policies about seed funds - money usually raised and invested in new business to develop an idea, create the first product and promote the product into the market for the first time.

It is a popular financial instrument in the United States, and is most commonly provided by angel or other private investors.

The commission decreased the fund application threshold to 50 million?($7.95 million)?yuan from 200 million yuan, which means more management companies can apply to set up a new fund product.

Meanwhile, the money raised from the fund company's shareholders, self-owned capital, high-level managers and fund managers should be more than 10 million yuan, according to the commission.

That can strengthen the fund companies' inner restraint mechanism and enhance responsibility of the fund managers, the official said.

"There will be a separate channel for approving the seed fund, and the specific policies should ask for public opinion before being officially released," said the official.