The move is seen as an effort by the Chinese to attract more foreign buyers into its stock and bond markets.

China just took another big step in opening its financial system to the rest of world.

The nation's primary currency regulator, the State Administration of Foreign Exchange, said in a statement on its website on Tuesday that foreign investors will no longer require quotas to buy Chinese stocks and bonds. The regulator also removed a $300 billion cap on foreign investment into its financial markets.

The announcement is referring to China's Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors programs, which regulate how overseas investors can purchase Chinese assets.

"The qualified foreign investors scheme is one of the most important schemes for the opening-up of China's financial markets," the State Administration of Foreign Exchange said in a statement.

The regulator continued: "The convenience of foreign investors to participate in the domestic financial market will be greatly improved again, and China's bond and stock market will be better and more widely accepted by the international market."

The programs will still require foreigners to register prior to buying Chinese securities, but the removal of the quota represents a significant effort by the Chinese to attract more foreign investors.

China has slowly loosened the reins on its financial system over the last two decades. The movement began in 2000 when the nation was negotiating its entry in to the World Trade Organization, according to Bloomberg.

The move also comes as China's role on the global stage has come into focus in recent years due to the ongoing trade war with the US.

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