Overseas institutional investors will be able to exchange their capital into renminbi and invest in domestic private equity (PE) and venture capital (VC) funds by the end of this year, according to Fan Xinghai, director general of Shanghai's financial services office, the Shanghai Securities News reported Wednesday.

Fang said Shanghai has come up with a trial plan for the Qualified Foreign Limited Partnership, which enables such investments.

Fang added the proposal is waiting approval from the Ministry of Commerce and the State Administration of Foreign Exchange, but said he expects no big obstacles.