Bridging Hong Kong, Shanghai for the future

The China Securities Regulatory Commission's decision to permit stock market access between the mainland and Hong Kong is likely to have a far-reaching impact on the Shanghai and Hong Kong bourses. Under the proposed plan, investors from the Chinese mainland and Hong Kong can freely invest in stocks listed in the reciprocal cities.

Under the pre-stipulated quota, qualified investors from Hong Kong can invest in stocks listed at the Shanghai Stock Exchange. At the same time, qualified investors from Shanghai can also invest in stocks listed at the Hong Kong Stock Exchange. The quota, which is currently set at 550 billion yuan ($88 billion) per year, is expected to fluctuate and eventually increase in the long run.

Bridging Shanghai and Hong Kong, arguably two of the most important financial centers of China for the moment and in many years to come, will create tremendous opportunities.