China should provide special funding to support the development of its new strategic industries, according to a report released on Saturday.

The report on "Internet of Things", compiled by the Guanghua School of Management under Peking University and other institutions, said that China's new strategic industries are facing difficulties to obtain financing in spite of their rapid development.

The report suggested that the country should set up special industrial funds to support those industries, which will create a win-win situation.

"The financing function of the capital market can become the catalyst for the accelerated growth of new strategic industries," it said.

China's 12th Five-Year Program for the 2011-2015 period said the country would support seven new strategic industries, including new information technology, energy conservation and environmental protection, new energy, biology, new materials, high-end equipment manufacturing, and new-energy cars.