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.

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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.