China's stock connect between Hong Kong and Shenzhen will commence on December 5th, and will allow investors to buy and sell shares on both exchanges.

The Stock Connect will enable investors to buy and invest in companies with greater ease. A total of 417 stocks on the Hong Kong Stock Exchange are eligible for trading, and 881 stocks are eligible on the Shenzhen Stock Exchange.

The capital threshold for mainland investors is set at a minimum of 500 thousand RMB, or about 72 thousand US dollars, in their securities and capital accounts combined. The daily transaction limit is 13 billion RMB for Hong Kong investors, and 10-point-5 billion RMB for mainland investors.

And, the transaction currency used on both bourses is the Chinese yuan. The Shenzhen-Hong Kong Stock Connect is part of the latest moves to improve connectivity between the two capital markets. The aim is to take effective action against cross-boundary illegal activities and market misconduct, with the ultimate goal of maintaining an orderly market.

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