(Oct 9): China's securities regulator on Friday published draft rules that would lower the threshold for setting up equity mutual funds, as the country's blue-chip index neared a more than one-year low.

The revised rules for mutual fund operations are aimed at supporting the development of equity funds and guiding more long-term capital to the stock market, the China Securities Regulatory Commission said in a statement.

Equity funds can be established after raising 50 million yuan (US$7.47 million), according to the draft rules, compared with 200 million yuan currently.

The threshold changes also apply to fund of funds (FOF), but the bar for setting up fixed-income mutual funds remains unchanged.

China's blue-chip CSI300 index closed on Friday near its lowest level in more than a year, as a selloff in AI related supply chain shares deepened.

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