Rules on the implementation of the free trade account system that enables full convertibility of the Chinese currency and allows offshore financing in the China (Shanghai) Pilot Free Trade Zone (FTZ) will be rolled out before the end of June, an official said on March 25.

The account will help Chinese companies, especially those engaged in foreign trade, secure cheaper yuan-denominated funding from offshore, where financing costs have been lower than that on the Chinese mainland.

"We hope to have the account in place by the end of the first half of this year," said Dai Haibo, deputy director of the Shanghai FTZ administrative committee.

China's central bank previously eased restrictions on overseas investment by individuals by allowing those working in the zone to open an account for overseas investment.

Nearly six months after it was established last September, the Shanghai FTZ has launched pilot schemes to advance financial reforms. Key programs include easing the cross-border use of the Chinese yuan, liberalizing interest rates on foreign currency loans, and facilitating offshore financing and outbound investment.