The nation will pursue the two-way opening of domestic capital markets, the central bank said in its 2015 annual report.
China will allow qualified foreign companies to issue shares on the Chinese mainland, the People's Bank of China (PBOC) said, without giving a date. It said it will consider allowing foreign companies to issue Chinese depositary receipts.
Chinese companies have long made use of American depositary receipts to issue shares on U.S. exchanges.
Previous efforts to allow foreign companies to issue shares in China's domestic stock markets have failed, though progress has been made in opening the bond markets to foreign investors.
A central bank researcher said on Friday that foreign companies will be encouraged to issue and trade yuan-denominated bonds and sell shares in domestic markets, with a stock connection between Shenzhen and Hong Kong coming "at an appropriate time."
The central bank's annual report, released on Tuesday, gives a summary of China's financial and monetary conditions and also provides an outlook for the economy.
The central bank said it will keep monetary policy prudent. It also pledged strict control of additional industrial capacity and said it expected mild acceleration of inflation.
