The Shenzhen-Hong Kong mechanism is seen to further promote opening up and reform of the mainland capital market. Ding Siyue explains the changes the mechanism will bring.

Opening up a channel of investment within the mainland market for international investors.

The Shenzhen-Hong Kong Stock Connect will help investors to share more dividends from the economic growth posted on the mainland.

Business analysts see the new mechanism to be an extension of the successful mutual market access program in Shanghai. This program, launched in 2014, is facilitating stock buying between Hong Kong and Shanghai exchange and vice versa.

The Shenzhen market is smaller than Shanghai's and many of its listed shares are in the smaller technology, medical, and consumer industries.

Through this new mechanism, investors expect to get a higher ROI from these companies.

Even business analysts believe the new cross border trade program will benefit the real estate sector, since developers take a bulk share in Shenzhen's market.

The Shenzhen-Hong Kong Stock Connect has no aggregate quota, making it more flexible for capital flows.

Analysts believe the mechanism can attract more long-term capital into the A-share market, as it can meet diversified demand from investors for cross-border investment and risk management.