Chinese brokerages with international arms, such as Guotai Junan Securities, are expected to participate in the mini-QFII program. [Photo / China Daily]

HONG KONG - The Chinese mainland securities regulator will begin a trial program that allows local fund houses to raise money offshore for investment in the domestic financial market, two sources said.

At least 80 percent of the money raised will have to be invested in the domestic bond market, said the sources who were familiar with the matter but were not authorized to publicly disclose the details.

"The move is based on the overall financial trend of the yuan increasingly becoming more international," one of the sources said on Monday. "The banks are already moving forward in this aspect and it's time for brokerages and securities companies to follow suit."

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Mini-QFII stakes are named after the eight-year-old QFII (Qualified Foreign Institutional Investor) program, which allows foreign fund managers to invest in Chinese stocks and bonds on behalf of overseas investors using money raised overseas.

Chinese brokerages with international arms, such as Guotai Junan Securities, are expected to participate in the mini-QFII program.

"Most of the money will be invested in the bond markets to ensure the stable development of the trial program," another source said.

The Chinese mainland has been trying to make its currency more international by establishing Hong Kong as an offshore yuan center.

China will also try to come up with new ways to use the currency beyond current options, which are now largely limited to depositing money into offshore yuan accounts and buying yuan-denominated bonds issued outside the country.

Reuters