Speculation over the opening of an international board in the China (Shanghai) Pilot Free Trade Zone, although denied by the Shanghai Stock Exchange, has taken on a new twist, with a published report saying that foreign companies might be able to sell shares in the zone.

A source with direct knowledge of the matter was quoted by The Wall Street Journal as saying that the authorities are working on a proposal to enable qualified foreign companies registered in the FTZ to sell shares via initial public offerings, ahead of listings on a designated trading platform in the zone.

The Shanghai Equity Exchange, in which the Shanghai Stock Exchange holds a 29-percent stake, plans to develop a platform to enable foreign companies registered in the FTZ to sell shares, according to The Wall Street Journal. But no time frame has been specified.