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CCTV Script 17/11/14

— This is the script of CNBC's news report for China's CCTV on November 17, Monday.

Welcome to the CNBC Business Daily.

Stock market history is being made today with the launch of the Shanghai - Hong Kong stock connect.

It will allow investors on either side of the Chinese-Hong Kong border to buy and sell equities in each others market.

[Steven Sun, Head of China Equity Strategy at HSBC] "This is the beginning of the end of China's capital controls. This is a big step toward integrating capital markets between mainland China and Hong Kong. It's going to lead to one country, one market."

[NICHOLAS STUDHOLME-WILSON / VP & Snr Research Analyst at Sun Hung Kai Financial] "Today is about an economic and political milestone that we've achieved. I've been basically waiting for this since 2007, in a long time coming. But actually, the real benefits are further out, because this is very much about the opening of a capital market and internalization of the RMB."

Selected major institutions have had access to A-shares under China's QFII program since 2003...

But the Stock Connect will open just about 90% of Shanghai's total market cap to global investors.

With a daily limit of $3.8 billion in cross-flow purchases... and a limit of $2.1 billion placed on Hong Kong investors...

It's not clear just yet if stock gains will come immediately.

[Steven Sun, Head of China Equity Strategy at HSBC] "The success of this program should be measured in years rather than days and weeks. This is going to significantly change the institutional investors' participation in the domestic A-share market and hopefully [will] force improvement of better corporate governance. Over the long term, the fundamental-driven value investment style will be instilled in the domestic A-share market."

I'm Chen Qian, reporting from CNBC's Asian headquarters


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