China held a launching ceremony Friday for its Nasdaq-style market, ChiNext, in Shenzhen, Guangdong Province.

The first batch of 28 selected firms will make their debut on Oct. 30 on the Shenzhen-based exchange.

The growth enterprise market (GEM) will boost start-ups of high technology and high growth, said Shang Fulin, chairman of the China Securities Regulatory Commission, at the launching ceremony.

It could help channel social resources to competitive new-born sectors and innovative enterprises, Shang said.

Zuo Xiaolei, chief economist with the Galaxy Securities, told Xinhua that the launch of ChiNext is a historic event in China's capital market and it defines the multi-layer development pattern of the country's capital market.

"It helps connect China's innovation-oriented companies with the country's innovation growth strategy and will definitely bring influences to China's innovation economy," she said.

It took ten years for China to go from mulling the idea of setting up the new board to finally launching it. The market is aimed at helping small and medium-sized Chinese enterprises that have been struggling to raise funds.

He Chengying, General Manager of the Development Research Department with Guosen Securities, said ChiNext improves channels for small business of high growth and high creativity to raise funds.

"It's especially necessary to help the small and medium-sized enterprises to raise funds after the global financial crisis. The time is ripe to launch the new board," He said.

He said high growth was the advantage of the exchange, as was better than the main board.

"Whether a growth enterprise market could succeed has much to do with its indigenous culture. The Nasdaq's success has a lot to do with the United States' immigration culture full of innovation," He said.

"China chose Shenzhen as the GEM's base. The city also boasts immigration culture full of innovation spirit," He said.

Since the 1970s, the GEMs have been an effective way for various countries to support start-ups. A total of 75 GEMs showed up in the world, but only about 40 survived and are active.

"The GEM poses relatively more risks than the main board as the GEM serves enterprises of innovation and growth," Shang said at the launching ceremony.

He Chengying urged the regulator to tighten monitoring and check speculation to protect small investors' interests.

"Many of the companies are oversubscribed," He said.

IPO launches in China have often seen steep price hikes followed by even steeper falls as investors snapped quick profits.

The launch of the new board will not affect the main board as the enterprises are small and the fund-raising volumes are relatively small too, He said.