Companies listed on the Chinese mainland's New Third Board can now be publicly traded in Hong Kong without additional approval or requirements. That's thanks to a new listing model launched by China's national equities exchange and quotations and the Hong Kong exchange over the weekend. The new model means that China is widening its financial sector by allowing domestic companies to simultaneously be listed on mainland and Hong Kong bourses at the same time. Let's take a closer look.

There are now over 11 thousand companies trading on the startup-focused New Third Board. In the past they had to first delist from the New Third Board to go public in other markets. But with the new listing rule, those that already meet the H-share listing requirements can directly sell their shares in Hong Kong.

LI XIAOJIA, CEO HONG KONG EXCHANGES AND CLEARING "Our partnership makes it possible for the New Third Board listed companies to go to H-shares and access international financial markets without losing any of their domestic investors. It's a new and practical funding model for the 11 thousand companies."

XIE GENG, PRESIDENT NATIONAL EQUITIES EXCHANGE AND QUOTATIONS "This is the first step toward cross-border and cross-market cooperation for the mainland stock market. It is also an opportunity for us to further transform the New Third Board."

Companies that actually fit the new model are a small number. But analysts say the change could still help connect the New Third Board with global markets. In that way, many undervalued startups in China could be discovered and recognized by overseas capitals.

SUN JIANBO, GENERAL MANAGER CHINA VISION CAPITAL "The New Third Board trading has been rather inactive. So I think the launch of the 'Plus H-share' model could add in some liquidity, so that the valuations could become more accurate and more market-oriented."