The State Council has pledged to beef up financial support to businesses hit hard by the COVID-19 pandemic, with steps to offer tailor-made financial services and provide funding that is more easily accessible to smaller firms.

In its executive meeting on Wednesday, it said it will scale up financial services toward businesses devoted to cultural and tourism development, offline retailers, hotels and transport service providers and continue to offer adequate funding support to the upgrading and growth of the manufacturing sector.

The nation will pilot the establishment of a credit loan evaluation system for self-employed individuals to make funding more easily accessible and support financial institutions to issue a special financial bond that amounts at least 300 billion yuan ($46.52 billion), according to a summary of the meeting.

Premier Li Keqiang said at the meeting that the government will give priority to the market players in its monetary policy, adding that it will step up regulation of the market to respond to the influence from the rise in price of bulk commodities.

Liang Zhonghua, chief analyst on the macro economy with Haitong Securities, said the decision from the State Council came as consumer spending remained a drag on the overall economic growth, which made it necessary for the government to enhance support to businesses hit hard by the pandemic.

"Consumption remained a weak link in the economic recovery, and the government should prioritize support to the growth of spending going forward," he said, adding that readjustment in income distribution and the growth of residential income should be another policy priority.

He said the recent spike in the price of bulk commodities has further reduced the profit margin of some businesses as it raised the cost of products and pumped the price, which would in turn hit consumer demand.

"It is important for the government to manage the inflation and especially manage the market's expectations over the inflation," he said.

Zhao Jinxin, a researcher on the macro economy with China Minsheng Bank's think tank, said commercial banks must amplify their role as the main channel for the indirect funding to solve funding challenges for smaller firms.

He said banks should increase the issuance of starter loans, extended loans and credit loans to reduce the financing cost and maintain the financing cost of smaller firms at a reasonable level.