CHINA should create a system to help companies to transfer between the main stock exchanges and a growing number of regional over-the-counter markets, according to participants at the Lujiazui Forum.

The OTC markets are designed to increase access to finance for small companies, with easier listing requirements than the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

"These two kinds of markets are serving companies of different scale and at different stage," Liu Shian, vice general manager of the Shanghai Stock Exchange. "We should have a system to allow the companies to move between them because companies will develop."

But Zhang Yunfeng, vice chairman of the Shanghai Equity Exchange, a local OTC market, said that will require change to securities law and also convert current IPO rules from the strict review system to a simple registration method.

China launched its largest OTC equity trading platform in Qianhai area in Shenzhen last month.