The China Securities Regulatory Commission proposed lowering the requirements for applicants for the Qualified Domestic Institutional Investor program, such as fund companies and brokerages, in terms of capital and other requirements, the CSRC said on its website on Thursday.

Analysts said the move will encourage and help brokerages to increase outbound investment, deliver better performance and benefit as business channels expand.

QDII investors will also be allowed to invest in derivatives listed on foreign exchanges that have signed memorandums of understanding with the CSRC, increasing the number of foreign investment outlets from the current approved list.

In 2012, the average yield of QDII funds was 9.87 percent, more than the double that of stock-oriented funds in the domestic market.

A pilot QDII program started in June 2007. Thirty-two fund management companies and 12 brokerages had qualified as QDII by the end of 2012.