The China Securities Regulatory Commission said on Thursday it will remove the limitation on the quantity of publicly raised funds that fund management companies can apply for at the same time.

Currently, the CSRC allows financial institutions to apply for six new fund products at the same time.

In addition, the approval process will also be simplified. Ordinary fund products will receive the decisions on their applications within 20 days, the CSRC said.

The new rules will take effect from Jan 1.

"The easing of the fund approval policy will encourage financial institutions to improve innovation according to market demand," an official at the top securities regulator said.

"It will encourage different types of funds to come into the market and boost the stock market," he said.

According to the CSRC official, many fund management companies are waiting for the new rules to apply for more stock-investment products.