China issued guidelines on Monday aimed at boosting private investment in manufacturing, including stepping up fiscal support and "innovative financing" for private firms aiming for greener development and to move up the value chain.
The government will support private firms' fundraising efforts through products such as corporate bonds and asset-backed securities, as well as through fiscal measures such as tax subsidies, according to a statement posted on the Weibo account of the Ministry of Industry and Information Technology.
The statement, which was jointly issued by 16 major central government entities including the Ministry of Finance and the People's Bank of China, the central bank, also said the country will establish a national fundraising guarantee fund and expand the range of asset collateral that private firms could use for borrowing.
China has struggled to reverse weak private investment, particularly in key industries such as manufacturing.
It has announced various campaigns in a bid to stimulate private participation, including in sectors that have dominant firms.
More recently, Beijing has heavily promoted the Public-Private Partnership model, which channels private money into public infrastructure projects.
The statement set out eight major tasks to tackle, stressing that private capital will be guided toward making the manufacturing sector more "high-end, intelligent, green and more services-oriented."
China will also ramp up support for private firms in areas of manufacturing that are particularly weak and vulnerable, while encouraging more private involvement in transforming traditional industries via the "Internet plus" model.
China is also pushing for private firms to go global and invest in overseas infrastructure projects such as high-speed trains and solar energy products.