China's central bank is reportedly considering the idea of making Singapore a second offshore centre - after Hong Kong - for trading the Chinese currency, according to the Wall Street Journal.

The Monetary Authority of Singapore is in talks with the People's Bank of China to become an active market for buying and selling yuan, the newspaper said.

While the Chinese side is 'receptive', no decision is imminent yet, it said, quoting unnamed sources.

If the city state did become an offshore hub for trading the Chinese currency, it could rival Hong Kong in offering yuan-denominated investment products, also providing it with a boost in its standing as an Asian wealth management jurisdiction.