China vows investment, financing reform

BEIJING - China will overhaul its investment and financing system to stimulate market vitality amid the economic downturn, according to a document released Monday by the central authorities.

The government will cut red tape, improve supervision and encourage enterprises to invest, said a guideline jointly released by the Communist Party of China Central Committee and the State Council.

China will enhance private investment management, reinforce public investment, diversify corporate financing channels and accelerate transforming government functions, the guideline promised.

It also urged implementation of those measures.

The document marked the latest effort from the central authorities to solve entrenched funding difficulties for small companies and inspire the better use of private capital.

Private investment increased only 2.8 percent in the first half of 2016, down from 3.9 percent growth in the first five months and 5.7 percent in the first quarter, official data showed.