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China allows Hong Kong-Shanghai stock trades

11 April 2014 Last updated at 01:52 BST

China is boosting stock market ties with Hong Kong with new measures allowing cross-border stock investment between Hong Kong and Shanghai.

China's regulator said it would allow mainland investors to trade shares in designated HK-listed firms.

At the same time, Hong Kong investors will be allowed to buy shares in companies listed in Shanghai.

The chairman of the Hong Kong exchange called it a "breakthrough" for the opening up of China's capital markets.

Sharanjit Leyl talks to Tommy Xie, a China economist with OCBC Bank.

Watch more reports on Asia Business Report's website.

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