China's recently released measures on advancing the high-quality development of venture capital (VC) investment will focus on expanding capital sources, improving exit mechanisms and optimizing the market environment to better serve the country's scientific and technological innovation, the country's top economic planner said Wednesday.

Developing VC is a key step to promoting the virtuous cycle of technology, industry and finance, said Li Chunlin, deputy director of the National Development and Reform Commission, at a press conference.

With the typical characteristics of investing early, investing small and investing in hard technologies, VC is important in supporting the rapid growth of "little giant" firms and unicorn companies, said Li.

"Little giants" refers to the novel elites of China's small and medium-sized enterprises (SMEs) that are engaged in manufacturing, specialize in a niche market and boast cutting-edge technologies.

Official data shows that China has incubated 12,000 "little giants" and boasts a total of 369 unicorn companies, or startups valued at more than one billion U.S. dollars.

According to the measures, efforts will be made to encourage long-term funds such as insurance funds to flow into VC, support asset managers to expand investment in VC and enrich VC fund types.

A mechanism to connect VC with innovative and entrepreneurial projects will be established to provide VC institutions with a number of high-quality projects that are in line with the national development direction and strategic orientation.

The country will promote patent industrialization to support the growth of SMEs, continue to implement preferential tax policies for VC enterprises, implement differentiated regulation in line with the characteristics of VC funds, and expand the opening up of VC investment in an orderly way.

Efforts will be made to broaden the exit channels and optimize the exit policy of VC funds.

The country should prudently introduce contractionary and inhibitory measures, release more policy dividends, stabilize market expectations and activate the VC market, said Li.