Get ready to board China's reform train

I was pleasantly surprised to hear the good news first hand from Premier Li Keqiang at Boao Forum that investors on the Chinese mainland and in Hong Kong will soon be able to trade shares on each other's stock exchanges. The announcement is beyond adding weight to the importance of the scheme; it underscores Beijing's strong determination for reform.

The Shanghai-Hong Kong Stock Connect, or the "Through Train Program" (TTP), likely to be launched in six months, is a significant step toward the opening up of China's capital account.

Allowing cross-border capital flow, the program is a long-awaited, missing ingredient in the internationalization of the renminbi. Until now, the liberalization of China's currency has primarily focused on the economy's current account, especially on trade and direct investments.