China's efforts to streamline approval procedures for foreign exchange business applications under the capital account category are expected to boost foreign investment into the country, experts said.

The State Administration of Foreign Exchange (SAFE) on Wednesday issued a circular giving more power to its local bureaus in approving as many as 10 foreign exchange categories under the capital account.

"The move is to simplify procedures and facilitate foreign investment and trade," SAFE said on its website. The new rules will take effect from June 1, according to the foreign exchange administrative body.