HONG KONG, Nov. 10 -- The Shanghai-Hong Kong Stock Connect will start on Nov. 17, the Securities and Futures Commission of Hong Kong and the China Securities Regulatory Commission jointly announced on Monday.

Stock markets in both cities were buoyed by the news, The Hang Seng Index rose 387.24 points, or 1.64 percent, to close Monday's morning session at 23,937.48.

Most of the blue chips in Hong Kong stock market ended higher on Monday.

Hong Kong's Chief Executive C Y Leung welcomed the launching of the pilot program to provide mutual trading access between the Shanghai and Hong Kong stock markets. Leung believed that Hong Kong's financial market could make greater contribution to the reform and opening up of the country as well as the stability and prosperity of Hong Kong.

The Chief Executive of the Hong Kong Monetary Authority (HKMA) Norman Chan said on Monday that the program marks an important milestone in the liberalization of the Mainland's capital account, allowing overseas investors to invest in the Mainland A-share market through Hong Kong, and Mainland investors to trade Hong Kong shares through Shanghai.

"Twenty years ago, our Stock Exchange welcomed H-share listings and provided investors with a new opportunity to share in Mainland China's growth. With Shanghai-Hong Kong Stock Connect, we will be offering individuals and institutions another way to invest in Mainland companies, and more importantly, it will broaden the investor base of the Hong Kong market," Chairman of the Hong Kong Exchanges and Clearing Limited C K Chow said on the same day.

Hang Seng Bank said they were ready to provide diversified trading channels and promotional offers so that customers can take full advantage of the investment opportunities.

Head of China Equities of UBS Yang Xia said the launch of the program will provide a significant boost to international participation in the Chinese equity market, providing international investors with access to the 3.9 trillion U.S. dollars A-share market.