China's top securities regulator now allows commercial banks and insurance companies in Hong Kong to participate in the pilot program for renminbi qualified foreign institutional investors, or RQFII, a move to attract more long-term funds from overseas to boost the mainland capital market.

Before that, only the Hong Kong-based subsidiaries or branches of mainland fund management companies and securities companies could issue renminbi-denominated investment tools for foreign investors.

The modified regulation for the RQFII pilot program took effect on Thursday, the China Securities Regulation Commission announced.