Hong Kong and Shanghai unveil plan to link bourses

China has taken a big step towards opening up its financialsystem to the rest of the world by allowing investors in Hong Kong to trade shareslisted on the Shanghai stock exchange for the first time.The new regime, unveiled by China’s Premier Li Keqiang on Thursday, will giveglobal investors far easier access to companies listed in Shanghai while alsofurthering Beijing’s efforts to internationalise its currency, FT reported. In return,Chinese investors will be able to trade more than 250 Hong Kong-listed shares,offering them a rare foray into international markets. Li said the “stock exchanges connectivity mechanism” would “further promote two-way opening up and healthy development of the capital markets on the mainlandand Hong Kong”.