China will take a batch of new measures to support the country's industrial sectors to ensure stable growth, structural adjustments and effectiveness, according to an official statement released on Tuesday.
Experts said such measures could significantly help industries that are burdened by excess capacity, sluggish demand and declining prices.
The measures aim to tackle fundraising issues for industrial companies during a transitional period and increase financial support for supply-side reforms, according to the statement published Tuesday on the website of the People's Bank of China (PBC), the central bank.
The statement detailed specific proposals to resolve several issues, including increasing monetary and credit policy support for industrial sectors, enhancing the capital and insurance markets' support for industrial firms.
Also, it included proposals of encouraging innovation in the fundraising systems for industrial companies.
"The industrial sectors are going through a tough time right now, and companies need money to move forward during this transitional period," said Chen Yao, a research fellow at the Institute of Industrial Economics at the Chinese Academy of Social Sciences.
The measures, which will provide industrial companies with cheaper and easier fundraising channels, may help the companies implement supply-side reforms to reduce excess capacity and ensure effective supply of industrial products, he told the Global Times Tuesday.
However, Chen warned that ailing industries need to find innovative ways to grow without relying too much on the government.
Also, such measures need to have a firm focus, said Tian Yun, director of the Research Center of the China Society of Macroeconomics.
"They should focus on companies that really need the help right now," Tian told the Global Times Tuesday.
He noted that small and medium-sized enterprises, steelmakers and energy companies could use the help.
Other proposals include facilitating mergers and restructurings among industrial firms, helping companies to "go global", and enhancing measures to prevent risks, according to the statement.
Chen also noted that such measures are also necessary to eliminate nonperforming companies and expand the markets for industrial products.
The proposals were jointly released by eight government bodies including the PBC, the National Development and Reform Commission, the nation's top economic planner, and the China Securities Regulatory Commission and the Ministry of Commerce.
The joint release reflects the significance of the measures and the government's determination to help the troubled industrial sector of the economy, Chen noted.