China will introduce an innovative quality financing and credit enhancement policy to ease financing challenges for small and micro-sized enterprises, as well as a guideline to support platform companies to use online traffic efficiently, according to a State Council conference on Monday.

Luo Wen, head of the State Administration for Market Regulation, said the market regulator will work with other ministries to promote companies' technological capabilities and quality qualifications for financing basis.

Together with equity, funds and bond-based financing tools, the country aims to generate a credit enhancement and financing quota of 300 billion yuan ($41 billion) each year to help address the financing challenges of SMEs, Luo said.

READ MORE: China to boost financing support for data development, utilization

Meanwhile, the SAMR will roll out a guideline to encourage online platforms to allocate more online traffic and resources to SMEs, especially to new entrants and agricultural firms.

Luo said this will help businesses tap into larger audiences during major promotional events and enhance their ability to utilize online traffic more efficiently.

"Altogether, such efforts are expected to address some challenges faced by SMEs during their operations, and drive them to higher-quality development, so as to inject more vitality into the market," he added.

To further assist individually owned businesses, Luo said more targeted policies related to taxation, social security, employment and financing will be rolled out.

READ MORE: Chinese banks approve 1.4t yuan for 'white list' property projects

Official figures show that as of the end of August, China had registered 125 million individually owned businesses, accounting for two-thirds of the country's total business entities.

Luo said China will also accelerate the revision of industry standards to give a boost to the large-scale equipment upgrades and trade-ins of consumer goods, which was launched this year to expand domestic demand.

Under this initiative, factories are encouraged to replace old machines with advanced new ones, and individual consumers can enjoy subsidies on automobiles and home appliances, among others.

READ MORE: China unveils plan to boost development of technology finance

China will upgrade technical standards for energy consumption and emission, raise product quality and safety standards, and enhance recycling standards to drive growth in equipment upgrades and consumer goods replacement, Luo added.

With Xinhua inputs