Bloomberg eyes huge opportunities in 'major step forward' for stock trading

The start of the Shanghai-Hong Kong Stock Connect on Monday represents a major step forward for China's capital markets, allowing for the first time cross-border trading via the Hong Kong Exchange and Shanghai Exchange Mutual Market Access link.

Starting Monday, overseas investors were able to invest in Shanghai-listed stocks via the Hong Kong Stock Exchange and Chinese mainland investors could buy stocks listed in Hong Kong via the Shanghai Stock Exchange.

Over the past week, the markets have seen equity rallies in both cities, because Stock Connect will give international fund managers unprecedented access to China's $4.2 trillion stock market and allow a combined $3.8 billion of daily cross-border trading.