China lays out detailed 2014 reform plans

BEIJING (Reuters) - China's cabinet has approved detailed plans to be carried out in 2014 to push forward economic reforms, underscoring Beijing's determination to foster more sustainable growth.

Beijing will allow local governments to depend more on the sale of municipal bonds for their financing, and it will phase out their reliance on local government financing vehicles for cash, according to a statement published on Tuesday on the government website.

The statement was issued by the National Development and Reform Commission, the country's top economic planner, and was approved by the state council.

The guidelines followed a meeting held by the commission over the weekend, which laid out nine reform priorities for 2014, including deepening reforms in the power and the oil and gas industries and cutting red tape for investment approvals.

The plan also said it will set up a quota management system for local government debt.

It repeated the government's stance that market forces will be allowed to play a bigger role in setting the yuan exchange rate.