Shenzhen Stock Exchange.

China Securities Regulatory Commission says a stock connect scheme between the Shenzhen and Hong Kong bourses is expected to be launched this year.

Shenzhen-Hong Kong Stock Connect will allow investors to trade on both bourses under a quota system.

It is seen as a move toward a closer relationship between the financial markets of Hong Kong and the Chinese mainland.

China established the Shanghai-Hong Kong Stock Connect in 2014, aiming to further open the mainland capital market to the outside world.

It has operated steadily since its launch, paving the way for the Shenzhen-Hong Kong Stock Connect.