BEIJING - China will step up financial support to ensure that its annual target for renovation of shantytowns can be met, according to a government document published on Monday.

The country will support State-owned companies to raise funds for shantytown renovation through issuing bonds, said a State Council circular.

Private companies will enjoy the same preferential policies as their state peers when they participate in renovation projects, it added.

The new housing finance division in the China Development Bank should prioritize lending to shantytown renovation projects, and commercial banks should improve lending services to them, according to the circular.

Shantytown renovation is considered key to China's urbanization. The government has set the goal of subsidizing the rebuilding of 4.7 million housing units across the country this year.

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