China will reform state research fund management, delegating power to independent institutes in a bid to curb academic corruption and sharpen innovation, Xinhua News Agency reported on October 20.

The government will no longer be in direct charge of research projects. Instead, professional institutions will manage state funding in a transparent manner, according to a new rule that will be unveiled soon by the ministries of science and technology, and finance.

China already has such agencies, including the National Natural Science Foundation that was established in the 1980s, said Zhao Lu with the Ministry of Finance. He said more professional institutions will be set up.

"All the organizations should be professionally qualified for managing research projects. Meanwhile, an effective supervision mechanism is needed," Zhao added.

Academic corruption has been seen in China's universities and research institutes, where misuse of government funds is common.

According to the latest report, Li Ning, a leading scientist in transgene biology and a member of the elite Chinese Academy of Engineering, was arrested for suspected misuse of state funds in his research project on new transgene biological species.

He was among seven professors from five universities found obtaining over 25 million yuan ($4.09 million) of state funds by false means, according to the Communist Party of China Central Commission for Discipline Inspection.