Financial reform is high on the agenda of the Chinese government again this year, according to a government work report delivered by Premier Li Keqiang on Thursday. 

Li says China will continue to make steady progress towards making the yuan freely convertible under the capital account, including a pilot program to allow individual investors to directly invest in overseas markets.

The long-expected Shenzhen-Hong Kong Stock Connect program will also be launched when the time is appropriate, Li adds.

China has yet to realize the yuan's capital account convertibility, but the demand for individual investors to legally invest across borders is rising. The pilot programs will help tackle that paradox, the Chinese-language 21st Century Business Herald reported Friday.

The primary way for Chinese individual investors to make overseas investments is through qualified domestic institutional investors (QDII). QDII2, an updated version, will enable them to buy overseas equities and invest abroad directly. Preparation for the QDII2 pilot program was initiated years ago, but little progress has been made till this day, the newspaper says.

Li also says in his report that China will broaden market access for private capital, and encourage private investors to set up small and medium-sized banks.

A deposit insurance rule will likely be unveiled around May 1, Li had said earlier.