A much-anticipated pilot project to connect stock trading in Shanghai and Hong Kong aims to open up A-shares and usher in further reform in China's capital market.

The China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission announced on November 10 that they had approved the launch of the pilot project to provide mutual-trading access between the Shanghai and Hong Kong bourses.

Investors will be allowed to trade eligible shares listed on either market through local securities firms or brokers from November 17.

The project allows a maximum cross-border investment of 550 billion yuan ($90 billion) and a daily two-way quota of 23.5 billion yuan ($3.84 billion).

Yuan Clearing Bank

China's central bank on November 9 appointed the Industrial and Commercial Bank of China (ICBC) to clear transactions involving the country's currency, the Renminbi or yuan, in Canada's financial hub of Toronto.

According to a memorandum of understanding (MOU) between the two central banks, the People's Bank of China (PBC) decided to authorize the Canadian branch of ICBC to clear yuan transactions in Toronto, the PBC said in a statement on its website.

The PBC signed the MOU with the Bank of Canada on November 8. In the MOU, the Canadian central bank promised to support the establishment of a yuan clearing bank in Canada.

Also on November 8, the two central banks signed a currency swap deal worth 200 billion yuan ($32.64 billion) or 37 billion Canadian dollars.

Aircraft Export

Harbin Aircraft Industry Group Co. Ltd. (HAIG), a subsidiary of Aviation Industry Corp. of China (AVIC), on November 11 signed a contract with a U.S. airliner to sell 20 Y12 series aircraft to the firm.

The aircraft will be used for sightseeing tours and cargo transport from Las Vegas to the Grand Canyon. This is the first time China has exported civil aircraft to the United States.

The HAIG, based in Harbin, capital of northeast China's Heilongjiang Province, is a component supplier for world famous aviation enterprises such as Boeing and Airbus and has independently developed a variety of aircraft, including helicopters and light regional aircraft.

The Y12 series aircraft is a light and general purpose aircraft. The high wing two-engine aircraft can be used for both passenger and cargo transportation, as well as parachute jumping and touring.

HAIG has sold 130 units of its Y12 series aircraft to more than 20 countries and regions worldwide.

Funding Boost

Chinese smartphone manufacturer Xiaomi Inc. is talking to investors and banks to raise about $1.5 billion in its fifth round of financing, financial news website Jiemian of the Shanghai United Media Group reported on November 8.

The fundraising target is roughly $1.5 billion, which would be the largest investment (excluding IPO) raised by any Chinese company backed by venture capital.

One of the investors is said to be DST Global, a London-based investment firm that focuses on Internet companies, Jiemian said in the report.

Xiaomi, currently the world's third largest smartphone maker after Samsung and Apple, will use most of the money raised to develop video content for Xiaomi TV, according to the report.