China has issued a guideline on improving the market-based allocation mechanism of production factors in a bid to further facilitate the free and orderly flow of factors and stimulate market vitality.

Efforts will be made to further deepen reform and opening-up and remove institutional barriers that hinder the free flow of factors to lay a solid foundation for high-quality development and the building of a modernized economic system, according to the document issued by the Communist Party of China (CPC) Central Committee and the State Council.

China will promote market-based allocation of factors of production including land, labor and capital, while accelerating the development of the market of technology and data factors, it said.

The country will push forward the reform of rural land expropriation system, adjust policies on industrial land use and optimize its land management mechanism.

To further promote the flow of workforces, it will take more steps to advance household registration system reforms, guarantee the equal employment right of both urban and rural laborers and strengthen vocational skills training.

When it comes to advancing market-based allocation of capital factors, the document said China will improve basic mechanisms on the stock market, accelerate the development of the bond market, increase the supply of effective financial services and expand financial opening-up.

Access requirements for foreign-funded financial institutions will be gradually relaxed while domestic agencies will be prompted to participate in trading on the global financial market, it said.

The document underlined better protection and application of intellectual property rights (IPRs) and support for the marketization of independent IPRs in fields such as major equipment and key new materials while encouraging the integrated development of factors of technology and capital.

In the meantime, efforts will be made to nurture new industries, businesses and models of the digital economy and support the utilization of data in fields including agriculture, industry, transport, education and urban management.

Market-oriented pricing mechanisms and trading platforms of production factors should be further optimized, according to the guideline.

It also urged improving the environment for reforms by further cutting red tape and phasing out regulations and practices that hinder fair competition and ensuring equal access to factors for enterprises of various ownerships.