Qualified private equity funds will be allowed to raise money publicly, the China Securities Journal reported on Wednesday.

The new rule will be written in the amendment of the Law of The People's Republic of China on Securities Investment Fund, the newspaper said.

It added that eligible private equity funds include those investing in secondary market and joint stock companies. But those investing in limited liability companies are not included.

Funds raised publicly by such institutions will be subject to regulations overseeing mutual funds.

Amendment of the securities investment fund is closely watched by industry experts. The legislation will guide the development of China's nascent investment fund industry.