A series of piloting financial reforms in south China's Shenzhen has reportedly won approval from the state level, bringing the long-awaited innovations closer to reality.

Local government in Shenzhen, the forefront of reform, will review a list of documents related to the pilot programs on Thursday afternoon, Hexun.com reported.

Under the so-called “financial innovations”, banks both in Hong Kong and Shenzhen will be allowed to lend yuan directly to firms in each side, Chinese Internet portal Sina.com said today, citing one of these government documents.

Firms and banks registered in the Qinhai zone, an area about 18 square kilometers that is close to Hong Kong, will be encouraged to issue yuan bonds in Hong Kong.

The government will also help create a fund to foster the development of venture capital industry, and set up an exchange stock in Qianhai zone of Shenzhen before the end of this year, according to the document allegedly obtained by Sina.

Chinese ministries and departments including the central bank and the banking regulator have reached consensus in principal in cross-border lending between Shenzhen and Hong Kong, the document showed.

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