China's top economic planner on Tuesday released economic priorities for 2014 in a plan that has been approved by the State Council, the country's cabinet.

The National Development and Reform Commission said authorities will cut red tape and slash items that need administrative approvals.

China will continue to expand the scope of value-added tax (VAT) and move to regulate financing of local government.

A new mechanism of the yuan exchange rate will be developed and volatility of the rate increased. Capital account convertibility will expand in an orderly manner.

Eligible private investors will be allowed to start financial institutions like small or medium banks and invest in established ones.

As prices are stable, China will reform prices of resource products and in sectors including transportation, telecommunications, pharmaceuticals and health care.

State-owned enterprises (SOEs) will move towards mixed ownership through a cooperation mechanism between state and social capital.