Hong Kong-Shanghai stock connect to start Nov 17 The high-profile stock trading link between Hong Kong and Shanghai will begin on November 17, marking the start of one of China's most significant moves to open its capital account in years and putting to rest market fears the scheme was set for lengthy delays. Stocks in Hong Kong and Shanghai jumped in response to the news, which will for the first time allow international investors direct access to Shanghai stocks while mainland investors will be able to buy those of Hong Kong-listed companies. Delays to the start of the so-called Stock Connect - originally expected last month - had prompted speculation it had become mired in mainland politicking or had fallen foul of difficulties resolving tax and technical issues. Last week CY Leung, Hong Kong's chief executive, linked the delay to mainland displeasure over Hong Kong's democracy protests as part of a call for all segments of the city's economy to "co-operate." However on Monday the Chinese and Hong Kong regulators together with the two stock exchanges said they had approved the launch of the pilot scheme for next week. An hour into trading, the benchmark Hang Seng and Shanghai Composite indices were 1.8 per cent and 1.1 per cent higher, respectively. Shares in Hong Kong Exchanges and Clearing, the city's monopoly stock exchange operator, added almost 4 per cent, cementing the stock as the Hang Seng's best performer this year, having risen 41 per cent. Banks have been scrambling since April when the stock connect plan was first announced by Li Keqiang, China's premier, to align their systems and prepare customers. While it will not loosen access to renminbi, China's tightly controlled currency, the scheme is the first to allow institutional investors into mainland markets without requiring each to be individually approved, as they are now via the Qualified Foreign Institutional Investor scheme. Should the stock connect pilot be a success, market participants expect the initial quotas will be widened and more exchanges added. Both northbound and southbound investors will have to abide by the rules of the market into which they are buying and selling, requiring a series of adjustments by fund managers, their custodians and brokers to make systems comply. Bankers have said privately that preparing for the scheme has been one of the most complex exercises they have undertaken in years. Carlson Tong, chairman of the Hong Kong Securities and Futures Commission, the market regulator, said Monday's confirmation was the result of intensive work with the China Securities Regulatory Commission and marked a new stage in regulatory co-operation between the two, including data to help with real-time market surveillance. "In particular, the two regulators have established innovative and robust mechanisms in protecting the integrity of both markets," he added.