'Through train' program is expected to inject new life into equities in Shanghai, reports Emma Dai in Hong Kong.

Editor's note: The Shanghai-Hong Kong Stock Connect, popularly known as the "through train", is expected to launch next month and offer cross-border trading of mainland companies' dual-listed shares. The program, initially proposed in 2007, holds promise for the development of the nation's capital markets but also raises new issues of valuation and trading strategies.

The success of this arrangement can rationalize the diverging prices of dual-listed shares and help catapult the Shanghai Stock Exchange to the ranks of international exchanges. It will also provide immense profit opportunities for global institutional investors, whose increased presence is expected to re-shape the market.