Chinese regulators have approved a trial program in Shanghai to allow foreign hedge funds to raise yuan from domestic institutions for foreign investment, The Wall Street Journal reported. Each hedge fund will be allowed to accumulate up to US$50 million worth of yuan in China.

Despite it being far smaller than a similar program set up in 2006 for domestic investors, the program has significance as China’s leaders have pledged to move away from a command economy.

Hubert Tse, a partner at the Shanghai-based law firm Boss & Young said “This is a very groundbreaking development, regardless of the initial size of this pilot program.”