An updated negative list — a list of businesses that are either off-limits to foreign investment or that require advance approval — may be ready before June, giving the green light for investors to pursue a wide swath of opportunities in the China Pilot Free Trade Zone in Shanghai, a senior official of the area said on Sunday.

The current negative list is expected to become smaller, with more businesses open to free trade.

Jian Danian, deputy director of the FTZ's administration, told media during the Shanghai People's Congress that a new version of the list will be released in the first half of the year, and that more innovations in customs and the legal system are on the way in to encourage foreign investment.

The negative list was a major step taken in the FTZ, attempting to create a bridge to international investment management standards. It regulates only the forbidden areas for foreign investors. In other sectors foreign investors will be treated equally with domestic ones.

Meanwhile, Jian said, the Shanghai FTZ will continue to serve as a testing ground for reforms that can be applied elsewhere in the country.

Operational rules in foreign exchange reform will be out soon, Jian said.

Yang Xiong, mayor of Shanghai, said building the FTZ would be a top priority for the city in 2014, and Shanghai will "put all efforts into carrying out this national strategy".