Hong Kong Exchanges and Clearing and the Shanghai Stock Exchange signed a deal on Thursday to establish cross-border stock trading between the Hong Kong and Shanghai stock markets.

 Under the deal, the two bourses agree to provide order-routing connectivity and technical infrastructure for investors to trade shares on each other’s market. The two exchanges also agree to equally share the revenue generated from the trading links on a fair and equitable basis. Analysts say the move will help open up China’s capital markets.