Shanghai has submitted a proposal to the State Council, China's Cabinet, aimed at allowing its citizens to make direct investments overseas, but haven't gotten an official reply, the Xinhua News Agency reported Monday.

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Xu Quan, vice director of Shanghai Finance Office, said the proposal targeted non-financial investments using foreign currencies, including immigration and property investments, according to Xinhua.

"It will provide convenience to citizens because current policy on investing overseas requires the investor set up a company first," Xu said. "It will be a policy breakthrough for the building of the (Shanghai) financial center," he added.

Early this year, Wenzhou, in Zhejiang province, became the first Chinese city to unveil a plan on allowing individuals to make direct investments overseas. But the proposal is yet to be approved by the government.