The Shanghai Stock Exchange has secured approvals from regulators to set up an international trading center in China (Shanghai) Pilot Free Trade Zone (FTZ), the chairman of the bourse said on Saturday.

The move could pave the way for more foreign investors to tap the world's fourth-largest stock market by capitalization and also for foreign companies to issue shares in China.

Gui Minjie, chairman of the Shanghai Stock Exchange, said significant progress has been made in recent years allowing Chinese firms to list on overseas markets.

However, no foreign companies are allowed to issue shares on Chinese bourses.

Speaking to reporters at the sidelines of the ongoing two sessions in Beijing, Gui said the exchange was preparing a team to study ways to develop the trading platform.

China opened the Shanghai FTZ in late September to fuel development of the country's financial-services sector.

China has said that it would allow a trial of a fully convertible yuan capital account in the free trade zone, sparking hopes for an easing of controls that bar foreign companies from raising capital through IPOs.