The Shenzhen-Hong Kong stock link will have the eligible shares from the three Hang Seng Composite indices: the large cap, the mid-cap, and the small cap, as well as all Hong Kong-listed companies listed with both ‘A’ and ‘H’ shares.

Experts say the Shenzhen-Hong Kong mechanism aims to promote opening up and reform of the mainland capital market. It can meet diversified demand from investors for cross-border investment and risk management. It will also attract more long-term capital into the “A-share market.”

Analysts see the new link as a useful supplement to the Shanghai-Hong Kong program in promoting the mainland capital market’s opening up.