However, projects related to steel, cement, aluminum, charcoal and other industries where there is overcapacity will still have to comply with the requirement of 30 percent to 40 percent as the government strives to restructure the economy.

The growth in fixed-asset investment slowed to a decade low of 11.2 percent year-on-year in July. Infrastructure investment grew by just 19 percent year-on-year in the first half, compared with 23 percent in the same period last year.

The pro-growth policies announced on Tuesday were rolled out as China's factory activity continued to lose steam in August, signaling prolonged downward pressure on the economy.

China's official manufacturing purchasing managers index stood at 49.7 last month, down from 50 for July, according to the National Bureau of Statistics and the China Federation of Logistics and Purchasing. It is the lowest since August 2012.

Xinhua contributed to this story.