Chinese government has approved the launch of the Shenzhen-Hong Kong stock connect program.
Chinese State Council said the preparatory work had been completed, but gave no details on the launch date. Chinese premier Li Keqiang said the move marks a solid step toward better legal structure, and globalization of China's capital markets.
Analysts approved the long-awaited program, saying it is levelling up Chinese markets and its currency, or Renminbi. They are expecting more cross-border investment and more use of the Chinese currency.
Chinese government has been reforming the country's capital market, with more openness towards international markets. A similar program connecting Shanghai and Hong Kong markets kicked off in 2014.
Analysts say the newly approved Shenzhen-Hong Kong connect program carries the same spirit, although with different angles.
The decision could be a jolt to Chinese stock markets, as many brokerages are busy setting up special teams to serve the program.
Although no details are available at this moment, analysts are hopeful the move would let investors share the growth of both Chinese mainland and Hong Kong.
