The People's Bank of China (PBOC), China's central bank, said Tuesday that the country would expand the development of gold markets to increase the competitiveness of domestic financial markets while broadening investment channels for ordinary customers.

The central bank will allow more commercial banks to import and export gold and encourage them to offer yuan-denominated gold derivatives, according to a statement posted on the bank's website.

PBOC also vowed to perfect policies related to the gold market, including foreign exchange policies, to speed development of the market.

Further, the central bank asked lenders to offer better services for raising funds for domestic gold firms looking to establish overseas offices. It will also assist in opening the market to the outside world and permit more foreign participation in it, the statement said.

Additionally, China is considering allowing foreign suppliers to provide gold bullion directly for the Shanghai Gold Exchange.

Meanwhile, PBOC said the government would strengthen supervision of the gold market to ensure healthy and balanced development.