BEIJING, Aug.16 (Xinhua)-- China's State Council has approved plans to connect the Shenzhen and Hong Kong stock exchanges, the Chinese premier said Tuesday.

The preparation for the launch of the Shenzhen-HK Stock Connect is generally in place, Chinese Premier Li Keqiang said in remarks at a State Council executive meeting.

A similar link between the Shanghai and Hong Kong bourses was launched in 2014. It allows investors on the mainland and those in Hong Kong to trade selected stocks on each other's exchanges.

"The roll-out of the Shenzhen-HK Stock Connect after that between Shanghai and Hong Kong marks another concrete step for China's capital market towards one that is more law-based, market-oriented and global; it will generate many positive outcomes," Li said.

The Shenzhen-HK Stock Connect will help investors to share more of the dividends from economic growth on the Chinese mainland and in Hong Kong and promote closer partnership between the two markets while shoring up Hong Kong's role as an international financial center, Li added.

The scheme will be launched at a proper time this year after the regulatory rules and technological preparations are completed, China's securities watchdog said Friday.

Opening up is a key feature of modern China and the opening up of capital markets and other financial markets has played an important role in helping boost the Chinese financial sector's international competitiveness and its capability to serve the real economy, Li said.