A pilot program to provide mutual trading access between the Shanghai and Hong Kong stock markets is set to launch Nov. 17.

Regulators in China and Hong Kong said Monday they have cleared the way for the program, known as Shanghai-Hong Kong Stock Connect, to start next week. The China Securities Regulatory Commission (CSRC) and Hong Kong’s Securities and Futures Commission (SFC) have approved the official launch of the new trading experiment by the Shanghai Stock Exchange (SSE), the Stock Exchange of Hong Kong Ltd. (SEHK), China Securities Depository and Clearing Corp. Ltd. (ChinaClear) and Hong Kong Securities Clearing Co. Ltd. (HKSCC).

The new trading linkage was proposed earlier this year, and today, regulators said that the required trading and clearing rules, quoting mechanisms, and other regulatory and operational arrangements have now been finalized. The stock exchanges and the clearing houses have also completed a series of tests with firms in both markets, and regulators say they report that the systems are ready and contingency plans are in place.

The CSRC and the SFC say they have agreed on principles and arrangements for cross-boundary regulatory and enforcement cooperation, which they say, “signifies their joint commitment to take effective action against cross-boundary illegal activities and market misconduct to maintain an orderly market and protect investors under the Shanghai-Hong Kong Stock Connect.” Those arrangements include a facility for real time surveillance of market activity by the SFC and the CSRC for markets in Hong Kong and Shanghai, respectively, under the pilot program.

The regulators report that they have also established procedures for cross-border cooperation for any contingency, or major event, that affects the pilot program, and for handling related investor complaints. Additionally, China’s Investor Protection Bureau and Hong Kong’s Investor Education Centre (IEC) have established an arrangement to cooperate on investor education relating to the Shanghai-Hong Kong Stock Connect.

“We welcome today’s announcement which is the result of close and intensive cooperation between the SFC and the CSRC over the past few months. In particular, the two regulators have established innovative and robust mechanisms in protecting the integrity of both markets when the pilot program commences,” said the SFC’s chairman, Carlson Tong.