The State Council, China's Cabinet, vowed on Wednesday to facilitate greater direct financing for companies from the capital markets and to further improve the efficiency of the financial industry to support the economy.

The measures will include expanding the financing channels for companies, reducing their financing cost and leverage and offering greater financial support to innovative and high-tech startups, the State Council said at an executive meeting presided over by Premier Li Keqiang.

The leadership in Beijing has emphasized the crucial role of the country's stock and bond markets, aiming to develop a multilayered capital market to enrich the direct financing tools for companies.

The pledge came as the country strives to boost the function of the capital markets and seeks to sustain economic growth through supply-side reform. The term often refers to policy measures for improving industrial efficiency and competitiveness while seeking to reduce corporate costs through measures including tax cuts.

The State Council also supported the creation of a strategic emerging industries board on the Shanghai Stock Exchange, to help high-growth and innovative enterprises raise funds through the capital market.

The new Shanghai board is likely to be launched next year. It is expected to initially attract US-listed Chinese technology companies that are seeking to go private and relist in the domestic market. The government also vowed to allow more companies to raise funds on the National Equities Exchange and Quotations, better known as the New Third Board, a share-trading platform for small and innovative companies.

In a separate statement, the State Council said it will cut the price of coal-fueled electricity next year. It aims to reduce corporate costs amid falling coal prices and sluggish production activities.

"The government appears committed to deepening structural reforms, in particular 'supply-side reforms', with five priorities unwinding overcapacity, destocking, deleveraging, lowering operation costs and increasing effective supply," said Chang Jian, chief China economist at Barclays Capital, in a research note.