The State Council has decided to establish a bond financing tool to support private enterprises and ease their financing difficulties in a co-ordinated market-oriented way, The Paper reported.

The People’s Bank of China will provide initial financial support to professional institutions and will entrust them to provide credit support for private companies which intend to issue bonds to ease temporary liquidity pressure, according to the statement on the government website.

Commercial banks and insurance companies can be introduced to participate in under mature conditions, and establish a risk sharing mechanism together, the statement added.

It also mentioned that the State Council will further reduce market access restrictions for social capital, simplify administrative matters and the investment approval process, as well as ease the tax burden for corporations.