The Lanhai Equity Exchange recently completed its official registration and will be operational in April in the coastal city of Qingdao, a move experts said is a breakthrough in the development of the local capital market.

The exchange was established after Qingdao was approved by the central government as a pilot zone for wealth management early this month.

Located in the Jinjialing area of Laoshan district, home to a large number of financial institutions in the city, the exchange is key to the city's plan to build a multi-tier capital market that helps pave the way for the wealth management pilot zone, according to the city government.