China sets up a new Strategic Emerging Industry Board under the Shanghai stock exchange. [Photo: chnsourcing.com]

China has announced it is setting up a new Strategic Emerging Industry Board under the Shanghai stock exchange.

The new board is aimed at the country's domestic high-growth and innovative companies.

The China Securities Regulatory Commission is also working to speed up the transfer system for New Third Board companies to the bigger Shenzhen bourse.

The New Third Board is a national share transfer system for small- and medium-sized enterprises.

A stock connect scheme between Shenzhen and Hong Kong will also be launched next year.

The stock connect scheme allows investors to trade on both bourses under a quota.

For more on the capital market, CRI’s Shane Bigham spoke with Mike Bastin, Director of the China Business Centre at Southampton Solent University based in London.