Environmentalists hailed a Chinese government ban on serving shark's fin and bird's nest soup among other wild animal products at official functions on Monday, saying it will set a precedent that will help protect endangered species.

The Communist Party of China announced the ban as part of a sweeping government crackdown on corruption, excessive spending and extravagance.

An official notice from the Party and the State Council, China's Cabinet, released on Sunday "ruled out dishes containing shark fins, bird nests and wild animal products at official reception dinners".

"I think it is great. I think it is extremely important for a whole bunch of reasons," said Matthew Durnin, a former director of science at the Nature Conservancy who has spent 20 years in China working on projects concerning endangered species.

"With sharks particularly, they are an apex predator, they are very important. Lots of systems and animals are getting destroyed in the oceans.

"Something that is at this higher level in China really sets a precedent that needs to be set."

Shark fin soup was once a luxury enjoyed by China's wealthy, but environmentalists say shark populations around the world have been decimated by its consumption.

Durnin said he believes Beijing will enforce the new ban, as concerns over the environmental impact of such habits have become "very high profile" in recent years.

Large banquets have been held in China to show wealth and status to visiting guests, and expensive dishes such as shark's fin have long been staples.

"It's a commendable decision and a brave one that the Chinese government has taken," said Alex Hofford, executive director marine conservation group MyOcean, based in Hong Kong.

The decision was "hugely significant", he said.

"It's going to have a great impact on society, because what the government does shows leadership in society and then the corporate sector will quickly follow suit," Hofford said.

"It doesn't really matter if it is for environmental (reasons) or for curbing official extravagance, as long as the job gets done."

The new rules were intended "to provide diligence, fight extravagance, and to build a clean government", the official announcement on Sunday said.