The investment quota for qualified foreign institutional investors and those using renminbi should continue to expand until completely free capital flows into the stock market, a policy adviser said on Friday.

Under the framework of the Closer Economic Partnership Arrangement, a document signed between the Chinese mainland and Hong Kong to tighten commercial ties, Qianhai, in Guangdong province, will launch the pilot program for QFIIs to invest in the A-share market, said Chen Dongzheng, president of the Shenzhen Stock Exchange.

"Qianhai will also be the place to allow foreign individual investors to use renminbi to trade stocks on the mainland," said Chen, who is also a member of the country's top political advisory body.