The long-awaited Shanghai-London Stock Connect was finally launched in London early on Monday, offering more opportunities for British and Chinese financial institutions to buy into each others' economic development.

The connect, a two-way depositary receipt mechanism that brings together two of the world's largest capital markets, brings together one of the world's largest domestic capital markets – the Shanghai Stock Exchange – with the world's leading international market, the London Stock Exchange.

The Shanghai-London Stock Connect will allow global investors to benefit from China's stable economic growth and ongoing reforms through London, while London Stock Exchange listed companies will be able to access Chinese investors directly through the stock connect.

It is the first time any foreign companies will be able to list in the Chinese mainland and the first time SSE-listed companies will be able to raise capital abroad through instruments fungible with their domestic shares.

In tandem with the Shanghai-Hong Kong Stock Connect, which was launched in 2014, international investors will now be able to access China A-shares through international trading and settlement practices.

"The hugely ambitious Shanghai-London Stock Connect has been one of the most highly anticipated bilateral initiatives in recent years. It could prove to be a gamechanger in deepening UK-China financial cooperation and expanding access to China's capital markets, " said Catherine Mcguinness, City of London Corporation Policy Chair.

Innovation is key to London maintaining its position as a leading international financial hub and linking one of the world's largest capital markets with one of the world's most international financial centers is good news for the UK, China and the wider global economy, she said.

"It means global investors can now benefit from China's growth through London, while UK-listed companies are able to access Chinese investors directly," she added.

The Shanghai-London Stock Connect has been developed jointly by the Shanghai Stock Exchange and London Stock Exchange Group, with the support of both the Chinese and UK governments and in collaboration with regulatory authorities.