Regulators in Taiwan said mainland companies will be allowed to issue yuan bonds in the region by the end of the year, local media reported.

The "Financial Supervisory Commission" in Taiwan was quoted in local media as saying that work is progressing regarding insurance and amending disclosure rules. Some mainland companies have already been allocated insurance quotas and will soon issue yuan bonds in Taiwan.

The China Development Bank has received a quota to sell between 4 billion yuan ($651 million) and 6 billion yuan in bonds, and the total amount for such bonds in Taiwan this year will exceed 10 billion yuan, the local Commercial Times added, citing unidentified sources.

The move is the latest sign that Taiwan is aiming to become an offshore yuan center to tap the Chinese currency's globalization.