China's social impact investment is very small, which is mainly in the State-owned sector, according to the latest report from the China Development Research Foundation.

Social impact investment is one which pays attention to social value as well as economic return.

The report said social impact investment was very small in China, but that it had huge potential. While the State-owned sector has played an important role, the private sector and civil society investment should be further increased.

It said credit was a popular means for Chinese social impact investment, rather than securities and equity.

According to the report, China should set up some social impact investment funds and perfect related laws and regulations.

Lu Mai, secretary-general of the China Development Research Foundation, said social impact investment could play an important role in China's transformation.