China's top economic planning body has submitted draft rules on regulating private equity funds to the State Council, the country's Cabinet.

The rules, under review for more than two years, are expected to be released by the end of this year, reports said, citing Cao Wenlian, vice financial director of the National Development and Reform Commission.

Details of the rules were not released but Shanghai Securities News said that the draft includes a record system.

Under the system, private equity firms that keep a record at the commission are able to compete for investments from the pension fund, China Development Bank and China Investment Corp, which runs the country's US$200-billion sovereign wealth fund, according to the newspaper.

Nine private equity firms have gained rights to keep a record at the commission, the report said.

A batch of yuan-denominated private equity funds have been set up in China, mostly on a trial basis.

(Shanghai Daily August 20, 2009)