China's transportation regulator issued guidelines on Thursday to improve management of the burgeoning car-sharing industry.

The government encourages car-sharing, which allows people to rent cars for short periods of time and can help ease urban congestion and parking pressure, according to the guidelines released by the Ministry of Transport, which are open for public comment for two weeks.

Car-sharing vehicles should register with public security bodies, pass several tests and be insured. They should not be leased to unidentified users.

Enterprises that run car-sharing businesses should protect users' private information and are encouraged to work with insurers to develop specific insurance products to protect their legal rights and those of their users.

Efforts should be made to allocate car-sharing vehicles in line with public demand, urban road networks and parking areas, as well as to offer preferential parking policies, according to the guidelines.

China is home to more than 40 car-sharing firms, which own more than 40,000 cars, most of which are new energy vehicles.