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Furthermore, the government called for policies to "let state-owned capital play a role in promoting mass entrepreneurship and innovation" by encouraging state-owned enterprises to "either take part in or establish venture investment funds" to provide funds for start-ups, according to the guidelines.

Banks should offer targeted financial products and more professional services.

Intellectual property rights will be protected and foreign investment will be given easier access to these new businesses, according to the guidelines.

More support will be provided to college students and those involved in research to establish startups.

The government has approved a slew of new measures to boost innovation and entrepreneurship, including financial support, facility construction and administrative assistance.

Economists at China's central bank lowered their growth forecast to 7 percent for 2015, from 7.1 percent previously.

Weighed down by a housing market downturn, weak domestic and external demand and stuttering local investment, the economy grew at its lowest rate in six years in the first quarter, expanding 7 percent.