China will encourage businesses to raise funds by issuing bonds, and will gradually open up the bond and other financial markets to overseas investors, the People's Bank of China (PBOC) said in an annual report on its website.

"As China puts restructuring of the economic growth pattern at the top of its agenda during the next few years, we will encourage and support enterprises in some key industries, especially small- and medium-sized enterprises, to raise funds through all kinds of bonds," said the central bank.

China will encourage businesses to raise funds by issuing bonds, and will gradually open up the bond and other financial markets to overseas investors, the People's Bank of China (PBOC) said in an annual report on its website on Friday.

"As China puts restructuring of the economic growth pattern at the top of its agenda during the next few years, we will encourage and support enterprises in some key industries, especially small- and medium-sized enterprises, to raise funds through all kinds of bonds," said the central bank.

"In 2011, the opening-up of the bond market to overseas investors will be further accelerated, as cross-border trade settlements in yuan increase and the number of foreign holders of the yuan rises," said the bank.

The PBOC predicted that the range and number of enterprises that gain funds through the financial markets will further increase, while stock and bond issuance and trading volumes will also rise.