Asia

China approves new mainland stock link to Hong Kong

  • In this Monday, Aug. 15, 2016 photo released by Xinhua News Agency, an investor stares at a stock price board at a stock trading hall in Hangzhou, capital of east China's Zhejiang Province. China’s Cabinet approved a long-awaited initiative Tuesday, Aug. 16, that will give foreign investors more access to Chinese stocks by linking stock exchanges in Hong Kong and the mainland city of Shenzhen. (Long Wei/Xinhua via AP)

    In this Monday, Aug. 15, 2016 photo released by Xinhua News Agency, an investor stares at a stock price board at a stock trading hall in Hangzhou, capital of east China's Zhejiang Province. China’s Cabinet approved a long-awaited initiative Tuesday, Aug. 16, that will give foreign investors more access to Chinese stocks by linking stock exchanges in Hong Kong and the mainland city of Shenzhen. (Long Wei/Xinhua via AP)  (The Associated Press)

  • In this Monday, Aug. 15, 2016 photo released by Xinhua News Agency, investors observe stock prices at a stock trading hall in Changchun, capital of northeast China's Jilin Province. China’s Cabinet approved a long-awaited initiative Tuesday, Aug. 16, that will give foreign investors more access to Chinese stocks by linking stock exchanges in Hong Kong and the mainland city of Shenzhen. (Zhang Nan/Xinhua via AP)

    In this Monday, Aug. 15, 2016 photo released by Xinhua News Agency, investors observe stock prices at a stock trading hall in Changchun, capital of northeast China's Jilin Province. China’s Cabinet approved a long-awaited initiative Tuesday, Aug. 16, that will give foreign investors more access to Chinese stocks by linking stock exchanges in Hong Kong and the mainland city of Shenzhen. (Zhang Nan/Xinhua via AP)  (The Associated Press)

  • Hong Kong Exchanges and Clearing Limited Chief Executive Charles Li speaks during a press conference on Shenzhen-Hong Kong Stock Connect at Stock Exchange in Hong Kong, Tuesday, Aug. 16, 2016. China's Cabinet approved a long-awaited initiative Tuesday that will give foreign investors more access to Chinese stocks by linking stock exchanges in Hong Kong and the mainland city of Shenzhen. (AP Photo/Vincent Yu)

    Hong Kong Exchanges and Clearing Limited Chief Executive Charles Li speaks during a press conference on Shenzhen-Hong Kong Stock Connect at Stock Exchange in Hong Kong, Tuesday, Aug. 16, 2016. China's Cabinet approved a long-awaited initiative Tuesday that will give foreign investors more access to Chinese stocks by linking stock exchanges in Hong Kong and the mainland city of Shenzhen. (AP Photo/Vincent Yu)  (The Associated Press)

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.