China plans to deepen structural reforms in 2017

China plans to deepen reform of its economy, cutting more excess factory capacity while making its state-owned firms more competitive and currency regime more market-driven, according to guidelines issued by the country's cabinet on Tuesday.

China's State Council said it endorsed the reform guidelines drafted by the National Development and Reform Commission, the country's state planner, according to an announcement published on the cabinet's website.

The guidelines, which include a raft of measures aimed at improving the economy, also call for reducing leverage in the country's corporate sector and pushing forward with fiscal and tax reform.

The guidelines represent an annual outline of government reform priorities. State sector reform, including shutting down excess industrial capacity, is among this year's priorities.

Merger and reorganisation of central government-owned conglomerates will be further promoted this year, the guidelines said, alongside the introduction of qualified non-state strategic investors.

A special plan for deepening reform of state-owned enterprises in China's struggling northeast region will also be formulated, the document said.

The cabinet said China would further improve the yuan's market-based mechanism, increase the currency's flexibility and maintain its stable status in the global monetary system, while steadily pushing forward yuan internationalisation.

China will quicken interest rate reforms to build a market-based benchmark interest rate and yield curve, it said.