Investors in Shanghai's stock market will for the first time on Monday be able to invest directly across the border in Hong Kong's Hang Seng stock exchange and vice versa.
The new system, called the Shanghai-Hong Kong Stock Connect, will give foreign investors direct access to Shanghai's so-called A shares, including many blue chip, state-owned companies.
China has strict currency controls, so it can manage both the value of its currency, the renminbi, as well as protect its economy.