BEIJING -- China published a regulation on Sunday concerning the supervision and administration of private investment funds, the country's first administrative regulation on the sector, marking the latest move to safeguard the healthy development of the industry and protect investors.

The regulation, with 62 items in seven chapters, will come into effect on Sept 1, 2023, the State Council said in a statement.

The regulation aims to encourage the standardized and healthy development of the private investment fund industry, better protect the legitimate rights and interests of investors, and encourage the industry to further play a role in serving the real economy and promoting scientific and technological innovation.

The regulation clarifies the scope of application, specifies the obligations and requirements of private fund managers and custodians, regulates fundraising and investment operations, and strengthens supervision and management as well as legal liability.

The new rules also make special provisions for venture capital funds, showing that China is encouraging investment into technology companies and start-ups.

Also on Sunday, China's top securities regulator said it would make solid efforts to promote the implementation of the regulation, draw up related measures and rules, and further refine the regulatory requirements, to better leverage the positive role of private investment funds in satisfying financing demands.

The private investment fund sector has developed rapidly in China, playing a positive role in serving the real economy while supporting entrepreneurship and innovation.

As of May, about 22,000 private investment managers had been registered, managing funds of around 21 trillion yuan (about $2.92 trillion), ranking among the top globally.