China is considering a pilot trial to allow qualified individuals to invest overseas in the Shanghai free trade zone, a step closer to scrapping the controls on the capital account.

A State Council executive meeting presided over by Premier Li Keqiang on Wednesday decided to study and initiate the trial in the zone to allow qualified domestic individuals to make overseas investments, according to a release issued after the meeting.

Mei Xingbao, an external supervisor for the Bank of China, said the announcement was long-awaited and could be seen as a step forward in the internationalization of the yuan.