China is set to make a proposal outlining the renminbi convertibility plan in 2013 in its move to push forward interest rate and exchange rate liberalization, according to a statement by the State Council, the country's cabinet. The statement was released on May 6 after a meeting led by Premier Li Keqiang on the focus of the 2013 economic reforms.

The State Council also said it will establish a mechanism allowing Chinese individual investors to invest overseas and draw up policies to protect retail investors. It will enlarge a trial programme to expand share transfer for small and medium enterprises and optimize the development of financing channels including bonds, equities and trusts.

Other goals highlighted in the meeting include improving transparency and efficiency of budgeting mechanism, enhancing risks control on local governments and expanding trial of value-added taxes.

Currently, the renminbi convertibility is allowed under current account, which covers trading of goods and services. However, capital account remains under control to avoid abrupt funds flow. The market widely expects the renminbi to be fully convertible in the next few years.