"Some ASEAN nations have proposed and are discussing with us similar arrangements," Assistant Foreign Minister Hu Zhengyue told reporters.

"If other countries have a similar need, we are ready for positive discussions in this regard," said Hu, who gave no other details on any talks now under way.

The comment came in a briefing on China's participation in a summit with ASEAN (the Association of Southeast Asian Nations), Japan and South Korea beginning on Friday.

China is gradually liberalising its currency, which is not yet fully convertible, while trying to expand its role overseas.

Beijing has recently signed or expanded swap deals with Malaysia, Indonesia, South Korea, Belarus and Argentina.

Such arrangements ease liquidity trouble as they boost the amount of Chinese yuan that banks in the other countries can draw on while servicing local companies that use the currency when trading.

China has said such deals were aimed at bolstering bilateral trade and investment to promote economic growth, while providing short-term liquidity to stabilise financial markets.

Hu also said China and Southeast Asia were on track to complete a free trade agreement by next year.

"The two sides have reached an understanding to complete a... free trade agreement by 2010. It seems that it will be concluded smoothly and on schedule," he said.