Following the New York Stock Exchange, Nasdaq, the other major US stock exchange, was approved by China Securities Regulatory Commission to open a representative office in Beijing, the company announced in Beijing on Thursday.

"It is a milestone for us to open a representative office in China." said Robert Greifeld, chief executive officer of the Nasdaq.

Fifteen Chinese companies have been listed on the Nasdaq during the first nine months this year, bringing the total to 49.

Michael Oxley, vice chairman of the Nasdaq, predicted last month during his visit to China that the country might surpass Israel to become the largest source of non-US listings for Nasdaq by the end of this year. Israel has 70 companies listed in the exchange.

"Having a representative office in China will enhance our ability to provide the highest level of value and service to Chinese companies," said Eric Landheer, Nasdaq Asia Pacific head.

Nasdaq, the world's first electronic stock market, has more than 3,200 listed companies including Microsoft, Dell and Yahoo. The total market value tops US$4 trillion.