Earlier decisions by SAFE to simplify the QFII and RQFII application processes were also important to facilitate cross-border capital investment, he added.

In November, another seven foreign investors were approved as QFIIs, raising the number of total qualified institutions to 199 as investment amounts reached $33.57 billion.

By the end of November, 64 foreign institutions had invested $11.93 billion under the QFII program.

In recent months, there have been fears that opening up the account could lead to large capital flows in and out of China, which could place great pressure on domestic macroeconomic regulation and financial stability.

But Zhu said, "A further opening of the capital account is unlikely to lead to huge capital inflows, or outflows, and the potential risk may not be as high as many people think." He pointed out that the quota amount should be decided according to market demand.

Zhu added the current gloomy A-share market may influence the investment plans of foreign institutions, encouraging some to shift funds from the stock market to bonds.

But he suggested the current weak investor confidence has mainly come from worries over company profitability, and that sentiment may strengthen as market values recover in line with economic growth.

Zhu said the momentum gained from monetary easing and fiscal stimulus since May was likely to continue into next year, resulting in economic growth of 8 percent.

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