2011-04-02 16:10

The State Council approved the plan to found China's over-the-counter (OTC) stock market, China Times reported Saturday.

China established the OTC stock trading pilot program in Beijing's Zhongguancun Science Park in 2006. It is similar to the Over-the-Counter Bulletin Board in the United States and provides an electronic financing platform for small companies to raise funds, according to Reuters.

China will accelerate the development of its OTC program by founding a stock exchange based in the capital city. The newly founded OCT stock market may first open to qualified high-tech firms in National High-Tech Industrial Development Zones. It will then expand to include non-listed companies in other sectors across the nation, the report said.

Analysts expect the OTC stock market to expand to individual investors who have two-year trading records and funds more than 500,000 yuan.

In addition, the OTC market may also introduce securities brokers to form a quote system. Dozens of brokers have acquired the qualifications approved by the Securities Associations, but only small- and medium-sized brokers showed strong interest in the pilot period, according to the report.