The China Securities Regulatory Commission said on Friday that it is planning unified regulatory rules for the asset management sector as part of its efforts to foster a good business environment and spur innovation.

"Unified regulatory rules will benefit investors as it encourages understanding of various financial products and also creates a fair competition environment for asset management companies to develop business," said Deng Ge, a CSRC spokesman.

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At present, the financial sector in China faces multiple supervision, with varied regulatory standards. This leads to higher regulatory costs and encourages arbitrage activities, market sources said.

The CSRC has earlier this month issued a regulation for promoting innovation in securities and investment funds.?

According to the regulation, China plans to set up modern asset management institutions that will chart a different development path and focus more on innovation.

Deng said that the regulator will revise the provisional regulation on currency funds later this year.

"We are also studying the cooperation between currency funds and the Internet to guard against systemic risks," he said.

Currency funds have developed rapidly in China since the second half of 2013, and reached a scale of 1.9 trillion yuan ($304 billion).

The CSRC said that it would fine-tune rules to enable foreign funds to participate in the pilot program allowing cross-border stock investments by investors in the Chinese mainland and Hong Kong.

The pilot program, which was announced earlier in April, allows investors in Hong Kong to buy and sell up to 13 billion yuan of stocks in certain companies each day at the Shanghai Stock Exchange, while mainland investors may buy and sell up to 10.5 billion yuan of stocks at the Hong Kong exchange.