TOKYO, Oct 14 (KUNA) -- China unveiled a rule to allow foreign direct investment (FDI) in the yuan legally obtained overseas, a step toward the government's goal of internationalizing its currency, state-run Xinhua News Agency reported Friday.

The move is aimed at promoting trade and investment by expanding cross-border use of the yuan and supporting the development of the yuan market in Hong Kong, the People's Bank of China, or the central bank, said in a statement carried by Xinhua.

The central bank said qualified foreign investors can directly apply for yuan settlements through the program with banks, making procedures for related financial services easier. The Ministry of Commerce also issued a statement, giving detailed definitions and application procedures for FDI in yuan. According to the new arrangement, FDI projects of more than CNY 300 million (USD 47 million) must be approved by the ministry before investors start their businesses in finance guarantees, foreign investment companies and macro-controlled industries.

Chan Ka Keung, Secretary for Financial Services and the Treasury Bureau of the Hong Kong Special Administrative Region government, said the rule can boost enterprises' intentions to issue yuan-denominated bonds in Hong Kong. "I believe the new FDI measures will boost the yuan-denominated bond market in Hong Kong with simpler procedures for foreign investors to raise funds in yuan for their investment in China's mainland," Chan was quoted as saying.