Bank accounts within the Shanghai free trade zone will be allowed more space in handling offshore financing. This was the word Wednesday from the Shanghai headquarters of China's central bank.

The office says companies in the Shanghai FTZ will be able to set up onshore cross-border yuan capital pools using its FTZ accounts to manage yuan holdings. The money collected will be granted free and full convertibility in currency swaps.

Private equity funds and projects in the Shanghai FTZ will also be able to raise capital in the zone and overseas for cross-border investments.

Analysts believe the new rules will reduce financing costs for companies within the zone.

"Under the new rules, deposits from the company's foreign currency account and domestic account can be gathered into its yuan capital pool. The company can freely use the money at any time when needed. This will significantly reduce the company's financing costs," said Wang Xinhao, Vice President, Shanghai Pudong Dev't Bank.