(Bloomberg) -- China has drafted tougher rules for its 12.7 trillion yuan ($1.9 trillion) private fund industry, tightening scrutiny as the government reins in financial risks, according to people familiar with the matter. The proposed new Asset Management Association of China rules would require hedge funds and venture capital funds to raise at least 10 million yuan before registering a product, ending the popular practice of starting with smaller amounts, the people said, declining to be identified because the draft hasn’t been publicized. Private equity and asset allocation funds would have to raise higher amounts under the plan.