BEIJING - China will further open A-share transaction to foreigners, according to the China Securities Regulatory Commission on Sunday.

Expats working in China and foreign employees with equity incentives working in A-share listed companies abroad will be allowed to set up A-share security account in China.

The securities regulatory body of the countries of qualified foreigners should have already established a regulatory cooperation mechanism with the CSRC, the statement said.

"The move is significant in expanding the financing channel of the stock market, optimizing structure of the capital market and lifting the level of opening up and internationalization of the capital market," the CSRC said.

The CSRC will solicit public opinions on the draft rules and release the revised rules following procedures. Related tax and foreign exchange policies will also be released to support the rules.