China Securities Regulatory Commission (CSRC)?is positively studying business rules for public offering funds to participate in securities margin trading, options and commodities futures, according to the commission on Friday.

China's securities regulator also said that they are exploring to carry out a new fund product of real estate investment trust.

"We will largely support the innovation of public offering funds for promoting the development of Chinese multi-level capital market and meeting diversified demands of investors," said Deng Ge, a spokesman of CSRC.

Besides products of traditional secondary market, public offering funds are allowed to invest in private placement bond, stock index futures, treasury bond futures and gold contact.

Deng also said private equity and venture capital funds are encouraged to invest in secondary market.