China's capital market regulator is encouraging financial support for small businesses by accelerating the launch of a unique national over-the-counter market and a pilot program for issuing privately raised company bonds.

Specific regulatory measures are being discussed by the China Securities Regulatory Commission, aiming to help small and medium-sized companies raise money outside the stock market or bank lending, which can boost industrial economic development.

An official from the CSRC said on Thursday that a draft may be released soon to solicit opinions.