Chinese authorities are taking another step toward opening up the capital markets to foreign investors.

The Shanghai Stock Exchange and China Financial Futures Exchange have agreed to set up a joint venture with Deutsche Boerse.

The new company, based in Germany, will be known as the "China Europe International Exchange."

It will initially offer cash market products in the renminbi.

It’s designed for investors outside China.

Shanghai Stock Exchange and Deutsche Boerse will each own 40-percent of the joint venture, which is expected to open toward the end of this year.

This comes on the heels of London's FTSE announcing plans to set-up a sub-index on its exchange which will include Chinese A-Shares.

For more on the move, we're joined on the line by CRI's financial commentator Cao Can.

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