Guangdong, one of China's economic powerhouses, is conducting a feasibility study of a free trade zone in cooperation with the neighboring Hong Kong and Macao special administrative regions, insiders said.

They said that officials in the southern province have been urged to apply "immediately" for central government approval to begin construction of the FTZ.

The zone would encompass the Nansha district in Guangzhou, capital of Guangdong, as well as Hengqin island in the Zhuhai special economic zone, the Qianhai area in the Shenzhen SEZ and Guangzhou airport's comprehensive development zone, they added.