China says it aims to build Shanghai into an international financial hub by 2020 to reflect the nation's economic strength and the rising status of its currency.

The country's largest city will develop a multi-layered financial market system and promote the opening up of the financial services sector in coming years, the Chinese Government said.

Leaders also aim to make Shanghai an international shipping centre by 2020, the Cabinet said in a statement.

Experts say one of the biggest obstacles to Shanghai's ambitions to be an international finance centre are the tight restrictions on moving money in and out of China.

As a small step toward making the yuan an international currency, Beijing said in December it would be used on a trial basis to settle accounts between select Chinese industrial areas and Hong Kong.

The 10-member Association of Southeast Asian Nations (ASEAN) may join the pilot project later.

State media reported in February that Shanghai-based Bank of Communications and Shanghai branches of Bank of China - the nation's largest foreign exchange bank - would launch the trial soon.

-AFP