China is stepping up the expansion of its new over-the-counter equity exchange system in its efforts to create a multi-level capital market.

The National Equities Exchange and Quotations - the so-called "third board", an equity exchange system for small- and medium-sized enterprises - is to expand its pilot sites this year, an official told China Daily on Friday.

It is China's third national equity exchange after Shanghai Stock Exchange and Shenzhen Stock Exchange the only over-the-counter market regulated by China Securities Regulatory Commission.