Government backs creation of emerging industries board in Shanghai

The State Council, China's cabinet, issued a statement on Tuesday officially supporting the creation of a strategic emerging industries board on the Shanghai Stock Exchange, to help high-growth and innovative enterprises raise funds through the capital market.

It is the first time the central government has given its official nod to such a move, said analysts, who now expect the board to be in place soon.

The launch has been widely viewed as Shanghai's effort to catch up with domestic rival, the Shenzhen Stock Exchange, which has already been successfully attracting technology and innovation-driven companies to list on its Nasdaq-style startup and growth enterprise board, known as ChiNext.