The Central Committee of the Communist Party of China and the State Council, China's Cabinet, jointly issued a document on deepening investment and financing reform on Monday.

The document advanced further streamlining bureaucracy, delegating power to lower levels of governments and improving public services in order to establish a new investment and financing system that enables enterprises' independent decision-making, smooth financing channels and effective macro-control.

The government will cut red tape, improve supervision and encourage enterprises to invest.

The guidance aims to improve the investment and financing system to stimulate market vitality. To achieve that goal, China will enhance its management of private investment, reinforce public investment, diversify corporate financing channels and accelerate the transformation of government functions.

According to data from the National Bureau of Statistics, private investment increased only 2.8 percent in the first half of 2016, indicating private investment has slowed sharply, which is a concern for the government.

The document marked the latest effort by the central authorities to solve entrenched funding difficulties for small companies and encourage better use of private capital.

The government will provide more financial support to startups, and companies will be encouraged to raise funds through the issuing of bonds. Domestic companies and financial institutions will be granted easier access to foreign capital.