China's Government Offices Administration of the State Council (GOASC) is to issue guidelines to ban serving shark fins at official receptions.
A GOASC official said the ban could take up to three years to implement and would help cut the cost of sometimes lavish banquets held for state functions.
The GOASC will cooperate with financial departments to restrict expenses on luxury food at official receptions, and impose stronger supervision over banquets funded with public money, according to the report.
The news drew positive response from animal welfare groups.
Humane Society International (HSI), an animal protection organisation, said that the news "marks a watershed moment for the global movement to protect sharks and pushes China onto the world's stage as an emerging leader in shark conservation."
Shark fin soup, considered a delicacy and a symbol of social status, is served at mostly exclusive restaurants throughout China. Moreover, a widespread belief that shark fin is of great nutritional value has only helped with its fame.
The World Wildlife Fund says that 181 species of shark are under threat, up from 15 in 1996.
According to WildAid, a wild animal conservation organisation, up to 70 million sharks are slain annually for their fins, which has put at least 17 per cent of known species of shark and manta on the verge of extinction.
It said the Chinese mainland and Hong Kong have been among the biggest importers of shark fin for years. So far, no legislation has been introduced in China to ban the practice.
