More freedom will be given to foreign funds investing in the Chinese capital market and to domestic individuals buying overseas securities, as officials at a key meeting announced a plan to open the country's capital account.

Officials at an executive meeting of the State Council led by Premier Li Keqiang said on Monday that China would propose an operational program within the year to make the yuan more convertible in the capital account.

The move comes after Li promised in March to open the economy further to market forces and take away some power from government departments as part an effort to reshape the growth model.