China's Cabinet has approved an initiative that will give foreign investors more access to Chinese stocks by linking exchanges in the mainland city of Shenzhen and Hong Kong.

The Cabinet said Tuesday preparations are "basically completed" but gave no details of how the link would function or when it would begin.

A similar measure linking Hong Kong, which is Chinese territory but has a financial system that is open to foreign investors, with the Shanghai exchange was launched in 2014. It allows foreign investors to buy Chinese shares through Hong Kong.