A long expected agreement between the Shenzhen and Hong Kong financial sectors has received government approval, paving the way for a better-regulated stock market.

“The preparation for the launch of Shenzhen-Hong Kong Stock Connect has been basically completed, and the State Council has approved its implementation plan,” Premier Li Keqiang told a State Council executive meeting on Aug 16.

The Premier said all related parties have been holding high expectations for the new initiative, stating in a government report earlier this year: “the Shenzhen-Hong Kong Stock Connect will be launched at an appropriate time.”

Since its pilot at the end of 2014, the Shanghai-Hong Kong Stock Connect has withstood its market test, with steady and orderly overall performance. The program has achieved its expected targets, earning positive feedback from all related parties, the Premier said.

The planned launch of the Shenzhen-Hong Kong Stock Connect, based on the successful Shanghai-Hong Kong Stock Connect, marks another steady step towards building a law-regulated capital market with international features, which has positive significance in many aspects, the Premier said.

The Premier noted that the launch of the program would help investors better share the fruits of economic development in both the mainland and Hong Kong, deepen the financial cooperation between them, and consolidate and enhance Hong Kong’s position as an international financial center.

The program will also help further exert the geographic advantages of Shenzhen and Hong Kong, and enhance the cooperation between the mainland and Hong Kong, the Premier said.

The Premier stressed that reform and opening-up are the most distinctive characteristics of modern China. The opening-up of the financial sector, including the capital market, is an important part of China’s overall opening-up efforts, which have been playing a significant role in enhancing the financial sector’s international competitiveness and ability to serve the real economy.