The Shanghai Equity Exchange, operator of the city's over-the-counter equity market, said that seven firms raised 7.71 million yuan ($1.19 million) on its new high-tech board, or N-board, on Monday.

The N-board, a high-tech trading platform for innovative startups, will make China's equity market multilayered and provide easier financing options for companies, said analysts. It will also provide investors with more investment channels.

Small and medium-sized enterprises which focus on high technologies, pharmaceuticals, and innovation-driven services will find the N-board a viable channel for financing, especially those backed by venture capital firms, according to Chen Yan, director of innovation at the SEE.

According to Zhang Yunfeng, general manager of the SEE, 19 out of the 27 listed companies on the N-board are in the startup phase, while the balance are in growth stages. About 70 percent of enterprises are profit-making with average revenue of 23 million yuan and average profit of 1.23 million yuan, while 10 percent are break-even and 20 percent are loss-making, Zhang said.

Listing on the N-board is conducted through the registration-based mechanism, with the approval process focusing on information disclosure, he said.

The share price of Shanghai-based Guangxin Jicheng Co Ltd, an optical chipmaker, rose 12-fold, or 0.77 yuan a share, to 10 yuan per share with transaction values reaching 1 million yuan on the first trading day.

The transaction value of Anwha (Shanghai) Automation Engineering Co Ltd, an assembly automation integration solutions provider, reached some 3.73 million yuan, the most among all N-board listed enterprises.

Analysts said that the long-anticipated N-board will help growth of enterprises with cutting-edge technologies or commercial models as funding will be easier for them.

"For innovative enterprises, timing while launching new products or services is the key to success in a market with fierce competition. It's like running in a race, and fundraising very often decides if you can start running ahead of others. N-board serves as a funding channel that shortens the fundraising time," said a research note from Haitong Securities Co Ltd.

The N-board will add to investment channels and let professional expertise play a bigger role, said sources.

Zheng Yang, head of the Shanghai Municipal Financial Services Office, said: "A wide range of tools, including the Internet, will be used to help startups including tie-ups with banks and other market players."

Firms that perform well and become profitable can in the future get listed on the ChiNext, the SME board or the main board, he said.