China is taking another step toward opening up the financial market with reform of the Qualified Domestic Institutional Investor (QDII) scheme, the Xinhua News Agency said on Saturday.

The State Administration of Foreign Exchange said that it would work with other government entities to push QDII reform and improve the macro-prudential management of the program.

The scheme allows qualified domestic investors to invest overseas and encourages two-way capital flow, according to Xie Yaxuan, an analyst with China Merchants Securities.