China will strictly control credit available for new capacity additions in the steel and coal sectors, both of which are suffering from price sapping supply gluts.

The government said Thursday  that it will also boost support for steel and coal exports by encouraging companies to shift capacity abroad as part of its effort to ease domestic overcapacity. That's according to a joint statement issued by the central bank and several other government agencies. The statement said China would strengthen financial support for companies 'going out' and use loans, export credits and project financing to encourage coal and steel companies to build capacity abroad.