China to support venture capital growth to aid startups

China will boost support for venture capital entities to encourage entrepreneurship and support startups, the State Council, China's cabinet, announced Thursday.

Industrial leaders, startup incubators and insurance firms will be encouraged to provide investment to startups, according to a statement released after a State Council executive meeting presided over by Premier Li Keqiang.

Foreign investors will be treated equally with domestic players and will enjoy much easier market access and streamlined administration procedures than before, the statement added.

The government will enrich investment facilitation products and improve platforms such as over-the-counter stock trading board to enhance direct financing.

State-owned enterprises also can set up venture capital funds, it said.

Venture capital firms with long-term investment strategies will enjoy preferential policies such as tax cuts, according to the statement.

The government will improve the regulation framework, curb illegal fund raising and guard against regional and systemic financial risks, the statement added. Endi