Foreign and private investors are being encouraged to invest in the elderly care market, a move top policymakers say can help boost domestic demand and create jobs.

The government will simplify procedures and slash administrative charges to allow non-governmental groups to run homes for the elderly, according to a statement issued after an executive meeting of the State Council, presided over by Premier Li Keqiang, on Friday.

"We encourage social investors to establish professional elderly care institutions and support overseas investors to invest in senior care," the statement said. "Market access will be widened."