China's government on Tuesday announced various measures for nurturing venture capital (VC) in the country. The move is part of the government's effort to give a big boost to the ongoing start-up revolution and sustain the current entrepreneurial wave in the country.

According to the guidelines released by the State Council, China will strengthen its policy support to VCs. The government will also create new funding avenues like diversifying corporate financing channels and allowing more foreign capital.

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The guideline revealed that China would attract foreign VCs by granting easier access to Chinese start-up companies and by simplifying rules and regulations, China Daily reported. Local Chinese companies will be equally encouraged to invest in foreign start-ups.

Other important measures include allowing State-owned firms to set up private VC funds and encouraging them to invest in new companies. Loans to VC's will be promoted in a timely manner as well. Business leaders and wealth management companies will also be encouraged to make investments in start-up firms.

A healthy and robust environment for VC's will help generate new growth avenues and stabilize the economy, the guideline said.

Plagued withan  economic slowdown, the Chinese government is busy promoting the spirit entrepreneurship in the hope that it will bring much-needed impetus to the slowing economy. The first eight months of 2016 reportedly witnessed 28.9 percent increase in small and new business registration.

Some popular Chinese start-ups include Wechat, Lashou.com, 360buys.com, UCWeb and Redbaby.com.cn. 

Tagschina, Start-Ups China, Start Up Companies in China, Venture Capitalists China