China is expected to triple its quota -- to $30 billion -- allowing overseas institutional investors to buy local currency A-shares, the China Business News reported on Wednesday, citing unidentified sources.

The move is one issue being discussed in ongoing Sino-U.S. economic talks in Washington, the newspaper said, adding that Beijing was also likely to lift the ceiling on the size of stakes foreign investors can hold in Chinese financial institutions.

China launched the Qualified Foreign Institutional Investor (QFII) scheme in late 2002 as part of moves to open its local currency A-share market in Shanghai and Shenzhen, which have set a string of record highs this year.

Media reports have said that several overseas QFII funds suffered heavy redemptions in the last few weeks due to growing concerns of a possible sharp correction in A-share prices.