BEIJING - Chinese companies will soon be less dependent on stingy banks and a volatile market for financing thanks to new support policies in the financial leasing industry.

The State Council, China's cabinet, mapped out measures in a regular meeting on Wednesday to help the burgeoning sector in hopes that it will provide cheaper funding options and better serve the real economy.

The government vowed to cut red tape, eliminate the minimum capital threshold for financial leasing companies to set up subsidiaries and simplify procedures for leasing equipment such as ships, farming machinery, medical devices and aircraft.

The move is the latest effort by the central authority to relieve firms of heavy borrowing burdens and stimulate slowing economic growth.

In a finance lease, firms can ask a financial leasing company to purchase the assets they need and then pay a rental fee to use them. After the lease, the firms have the choice to acquire ownership of the assets.

It is estimated that the financing costs are at least 10 percent lower than equivalent bank loans.

Cheaper and more tailored to borrowers' needs than traditional loans, financial leasing also requires less collateral, and is thus favored by startups and enterprises with weaker credit.

Guo Tianyong, a banking and finance professor of Central University of Finance and Economics, described finance leases as a significant bridge connecting the financial sector and real economy.

"Its flexible financing will help solve the cash crunch for enterprises and enables them to quickly put production facilities into operation," Guo said.

An emerging sector, China's financial leasing witnessed booming growth over the past decade due to authorities' loosened grip and growing demand.