China should further reform its financial system to steadily promote the market-oriented interest rate reform and enhance a market-based managed floating exchange rate regime, said a proposal released by the Communist Party of China (CPC) Central Committee Wednesday.

The country should also improve its foreign exchange reserve management and gradually realize Renminbi convertibility under capital accounts, said the CPC Central Committee document.

The CPC Central Committee's Proposal for Formulating the 12th Five-Year Program for China's Economic and Social Development (2011-2015), adopted at the Fifth Plenary Session of the 17th CPC Central Committee which ended Oct. 18, provides the basis for shaping the country's development in the next five years.

The document said China should accelerate reforms in economic and administrative mechanisms to promote the development of its market economy.

The country should continue to uphold the public ownership economy as the pillar, while creating an environment that allowed all types of ownership equal access to production elements, fair market competition and equal legal protection, said the document.

Efforts should be made to deepen reforms in the monopoly industries, and to encourage non-state-owned enterprises to participate in the reforms conducted in state-owned companies, it said.

The government should continue to push forward administrative reform, making more efforts to reduce administrative interference in micro-economic operations, optimize administrative department structures, reduce administrative costs, and build rule-of-law and service-oriented government, the document said.

More work should be done to enhance transparency and expand public participation in decision-making and to strengthen administrative accountability mechanisms, so as to boost government credibility, it said.

The government should speed up construction of a fiscal and taxation system that helped transform the mode of economic growth, it said.

Authorities should promote resources tax reforms, start levying environment protection taxes, and study property tax reforms.

The CPC Central Committee also proposed in the document to expand the scope of value-added tax, reduce business tax and to rationally adjust the consumption tax, in a bid to make the taxation system favorable to upgrading industry structure and developing the service industry.

The document said China should deepen reforms in resources products, and better balance price relationships of coal, power, oil, gas, water and mineral products, so as to improve pricing mechanisms for key commodities, services and production elements.

It said the country should ramp up efforts to perfect the land, capital, labor, technology, and information markets, speed up the construction of the social security system, and improve market regulation systems.

The CPC Central Committee also proposed active yet prudent reforms in public service institutions, introducing competitive mechanisms to diversify the agencies of providing public services.