China's security regulators on Friday said it will scrap limits on asset allocations under the Qualified Foreign Institution Investor (QFII) program in an attempt to attract more long-term capital, the official Shanghai Securities News posted on its website.

Under the amended policy, the China Securities Regulatory Commission (CSRC) will give investors in the QFII and the yuan-denominated variant RQFII scheme more freedom on how to allocate their assets in the country, the Daily Mail reported. And the commission has already informed the custodian banks of the changes, it said on its official Twitter-like Weibo account.

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The CSRC used to require foreign investors to invest at least 50 percent of their assets into stocks and their cash ratio should not exceed 20 percent. The initiative is China's latest move to open up its capital market, China.org noted.

Last September, China also issued a more relaxed investment rules under RQFII program, in which RQFII investors would be given quotas not greater than a certain proportion of their asset sizes after registration with the State Administration of Foreign Exchange (SAFE) instead of giving a specified amount like before.

The new policy intended to ease the approval procedure for RQFII quota that overseas investors can use for A-share purchases. In case the intended quota exceed the base quota, investors need to secure approval from SAFE, and if the overall asset size increase, the quota would also grow accordingly.

In August, China had approved $81.5 billion of investment quotas to 300 companies under QFII and 510.3 billion yuan ($76.52 billion) of quotas to 210 firms under RQFII, Reuters reported citing the Shanghai Securities News.

TagsRQFII, QFII, China Securities Regulatory Commission, Renminbi Qualified Foreign Institutional Investor, yuan, foreign investors, china, state administration of foreign exchange