BEIJING - China's state council, or cabinet, said on Monday it would adopt measures to encourage commercial banks to replenish capital through various channels and push funds to participate in capital-raising activity, state television said.

The state council said it would cut the threshold for commercial banks' issuance of preference and convertible bonds and streamline the approvals process for banks' applications to issue perpetual bonds aimed at replenishing capital, the broadcaster added.

Banks that replenish capital should boost lending support to private and smaller firms, the state council added, according to the report.

(Reporting by Beijing Monitoring Desk; Editing by Clarence Fernandez) ((vincentsy.lee@thomsonreuters.com; +86-10-6627-1277; Reuters Messaging: vincentsy.lee.thomsonreuters.com@reuters.net; follow me on Twitter @Rover829))