China plans to give more foreign investors access to the mainland's stock and bond markets, as long as they use yuan raised offshore, reports the Wall Street Journal.
Beijing may allow institutional fund managers in Switzerland and Luxembourg to join the Renminbi Qualified Foreign Institutional Investor program (RQFII), which allows approved foreign investors to tap directly into China's stock and bond markets.
It will soon give the go-ahead to a France-based investor for the first time, reports the Journal.
Launched in 2011, the RQFII program acts as one of the two main gateways for fund managers looking to invest in China's markets.
Chinese mainland stock exchanges were previously closed off to foreign investors due to China's exercise of tight capital controls which restrict the movement of assets in-and-out of the country.
Currently, 87 foreign investors have been granted RQFII licenses to 87 foreign investors, of which most of them are based in Hong Kong, three in London and four in Singapore.
Meanwhile, another channel for foreign money to enter China is due to kick off in October. The link between Shanghai and Hong Kong exchanges will also allow easier access for fund managers into the mainland's stock markets.