BEIJING - China's State Council on Wednesday announced it would create a 40 billion yuan ($6.54 billion) capital fund in its latest effort to spur innovation.

The government-initiated scheme aims to eventually attract social capital investment, according to a statement released after an executive meeting of the State Council presided over by Premier Li Keqiang.

After an open bidding process, several fund management companies will be selected to manage the fund and be given the authority to make investment decisions.

The initiative intends to boost industrial development and optimization.

Wednesday's meeting also pledged to promote service trade growth, with the gradual opening up of the finance, education, culture and healthcare industries, the statement concluded.