The highly anticipated Shanghai-Hong Kong stock exchange link that got underway Monday is a "very big deal" that will allow Western investors get into stocks that had previously been blocked and will open up China's capital markets, investment strategist John Rutledge told CNBC on Monday.
Foreigners are now able to place buy or sell stocks listed on Shanghai's A-share market through brokers in Hong Kong. Additionally, Chinese investors can use mainland brokers to invest in Hong Kong's H-share market.
So how should American investors play it?
"If you bought the top 10 market cap stocks in Shanghai and then took the lift up as the foreign institutions buy in, that's not a bad way to initially play this," Rutledge, chief investment strategist at Safanad, said in an interview with "Power Lunch."
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