CHINA will open its national over-the-counter (OTC) equity market to foreign investors, the operator said Friday, in the country’s latest move to deregulate its capital market.

So far, foreigners under the Qualified Foreign Institutional Investor (QFII) program, and its renminbi (yuan) sibling RQFII, can buy China-listed A shares as well as bonds.

QFII and RQFII investors as well as qualified overseas strategic investors will now be allowed to invest in China’s main OTC market, also known as the New Third Board, the board’s operator said in a statement Friday.

The move is aimed at actively utilizing foreign investment to promote high-quality development of China’s economy, the National Equities Exchange and Quotations (NEEQ) said in the statement.

China has stepped up deregulating its capital markets. Earlier this month, the government eased restrictions on QFII investment, allowing foreign investors to move money out of China more easily.

The New Third Board, launched in 2013, is home to over 11,000 startups. (SD-Agencies)