Guangdong province's proposal to build a regional free trade zone with Hong Kong and Macao has been approved "on principle", insiders said.

The 21 Century Business Herald quoted a "well-informed" source as saying that the Guangdong-Hong Kong-Macao free trade zone was approved due to its focus on regional cooperation, which is different from Shanghai FTZ's global emphasis.

The approval might be announced after the Third Plenary Session of the Communist Party of China's 18th Central Committee, also known as the 2013 Third Plenum.

The proposal also highlighted the joint application by Guangdong, Hong Kong and Macao. Some analysts said Hong Kong felt pressured to keep its financial center position after the Shanghai FTZ was launched.

The source said Tianjin might see the third free-trade zone established there.