China will further relax controls over market access for nongovernmental investment and stimulate it, [Hong Kong company registration] Premier Wen Jiabao said while delivering his last government work report at the parliament's annual session Tuesday.

"In the current stage, the role investment plays in promoting economic growth can not be underestimated, and the share of the governmental investment is decreasing," Wen told nearly 3,000 national legislators at the opening session of the 12th National People's Congress (NPC), China's top legislature.

China has both investment capability and investment demand, but the key is to make investment in the needed sectors, optimize the structure of investment, and improve its performance and returns, the Premier said.

The country will also strive to foster an environment in which economic entities under different forms of ownership could "compete on a level playing field and enjoy equal legal protection", [Set Up Company Hong Kong] he said.

"The central authorities have made clear their determination to encourage private economy," said Nan Cunhui, board chairman of Chint, a low-voltage electrical manufacturing company based in southeastern Zhejiang Province.

"We businessmen are looking forward to the detailed measures to implement the policy," said Nan, who is also a member of the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC).

"I hope the government can have more faith in private enterprises and it should make sure factors of production are fairly distributed," said Xu Guanju, vice chairman of All-China Federation of Industry and Commerce.

"We should unwaveringly consolidate and develop the public sector of the economy and encourage, support and guide the development of the non-public sector," Wen said in the government work report.

The State Council, China's cabinet, approved the establishment of a pilot financial reform zone in Wenzhou last March to regulate private financing activities after a crisis broke out in the city in 2011.

In Wenzhou, a hub of China's private economy, a large number of small and medium-sized enterprises (SME) used to resort to underground financing as state-owned banks failed to meet their needs.

However, the monthly interest rates, as high as five percent, made some companies unable to return the loans and they went bankrupt due to poor management. Other companies [Hong Kong Company Formation]were affected as many of them were loans warrantors for each other.

"Many SME are unwilling to get loans from banks as interest often exceeds profits," said Zong Qinghou, chairman of China's beverage giant the Wahaha Group.

A key measure to support private enterprises is to alleviate their taxes and charges, added Zong, who is also a NPC deputy.