BEIJING- China will improve cross-border yuan policy to stabilise foreign investment and foreign trade, the central bank said on Friday.

China will relax restrictions on use of yuan income under some capital account categories, and remove restrictions on the reinvestment of yuan funds by some foreign-funded firms, according to draft guidelines issued by the People's Bank of China.

Individuals will also be supported in conducting cross-border yuan business, the guidelines said.

(Reporting by Lusha Zhang and Kevin Yao; Editing by Kevin Liffey) ((LushaZhang1@thomsonreuters.com; 8610-56692106;))