China gave green light to two foreign financial firms to enter its securities sector Monday,an action acclaimed by Tuesday's China Daily as the country's historic first step to practically open up its securities market to foreign companies.

The two firms to get the first qualified foreign institutional investor (QFII)licenses were UBS Warburg and Normura Securities.

The English newspaper said that the China Securities Regulatory Commission (CSRC),the nation's watchdog of the securities market,announced the move on its website.

More QFII applications from overseas institutions were being reviewed,the newspaper said,and they should be approved if they meet the required criteria.

Deutsche Bank and Goldman Sachs,two global banking giants,arein the queue waiting for a QFII license,an entry ticket to China's A-share market as well as the bond market,which used to open only to domestic traders.

The newspaper said that UBS Warburg,a global investment bank,led all others in the pursuit of the license because it was the first to lodge a QFII application to the CSRC in mid-March.

China issued a regulation guideline on the QFII scheme in November and formally adopted it at the end of last year.

The operation of the QFII scheme is expected to bring more fresh funds and expertise to China's securities market,the newspaper quoted a Beijing securities researcher as saying.