China's securities regulator granted licenses to seven foreign institutions in January allowing them to invest in the country's capital markets under the Qualified Foreign Institutional Investor (QFII) scheme, Reuters reported.

The China Securities Regulatory Commission (CSRC) granted the licenses to investors including South Korea's National Pension Service and Shinhan BNP Paribas Asset Management Co Ltd, according to a statement on the CSRC's website.

The CSRC also granted the licenses to some Chinese financial institutions outside the mainland, including Taiwan's Mercuries Life Insurance Co Ltd and Hong Kong's Hospital Authority Provident Fund Scheme.

China has been accelerating QFII approvals in recent months as part of efforts to further deregulate the capital markets and encourage foreign participation.

China launched the QFII scheme in 2003 to allow foreign investors to buy Chinese stocks and bonds and has so far granted 142 QFII licenses and $22.24 billion in combined investment quotas.