"It will also help broaden the channels for yuan in the offshore market to flow back to the mainland," he said, "therefore encouraging them to hold the currency, which will in turn promote the circulation of the currency around the world."

The announcement is among a series of measures by China to achieve its long-term goal to increase the attractiveness of the yuan as an international currency. On Tuesday, Chinese Premier Li Keqiang, during a visit to the UK, said that the London branch of China Construction Bank has been designated as a yuan clearing bank.

CCB London, offering convenient and secured renminbi offshore clearing services, aims to expand an active and ordered yuan pricing mechanism for commodities, said a statement released after the announcement.

The stocks held by qualified foreign institutional investors in the Shanghai and Shenzhen stock exchanges accounted for less than 2 percent of the total stocks, which is much lower than the percentage in developed countries, said Lu Songbin, a researcher at the CSRC, in his analysis of China's latest financial reform measures.

"The commission will take measures to increase the scope of qualified foreign and domestic institutional investors," he said, "The commission will also consider formulating regulations for individual foreign investors to buy shares in China and will run pilot programs in this regard."

Yuan-denominated green bond debuts in London	Bank of China gets yuan mandate in Frankfurt