BEIJING -- China has outlined its financial system reforms for the next five years vowing to establish a transparent and healthy capital market, according to a document issued by the Communist Party of China (CPC) Tuesday.

According to the CPC Central Committee's proposals on formulating the 13th Five-year Plan (2016-2020), China will:

- Overhaul the issuance and trading mechanism of stocks and bonds, encourage direct financing, and lower leverage ratio.

- Make the banking system multi-level and diverse, and allow more private entities to establish banks.

- Give more financial support to small and micro-sized businesses and rural regions, in particular, impoverished areas.

- Continue to push forward market-oriented exchange and interest rate calculations.

- Regulate the development of Internet financing

- Speed up the establishment of a disaster insurance mechanism and pilot the trade of insurance assets.

- Fiscal revenues will be shared between the central government and local governments in a more reasonable way.

- A standard financing mechanism for local governments will be established.