Securities regulators said on Friday they had approved plans to include exchange-traded funds (ETFs) in stock connect schemes between the Chinese mainland and the Hong Kong Special Administrative Region (HKSAR).

After the implementation, which will take about two months, Chinese mainland and HKSAR investors "may trade eligible stocks and ETFs listed on each other's exchanges through local securities firms or brokers," according to a joint statement by the China Securities Regulatory Commission and HKSAR Securities and Futures Commission (SFC).

Ashley Alder, the SFC's chief executive officer, said that "ETF Connect is another milestone in the expansion of mutual market access" between the two markets. 

"It will provide investors in both markets with more choice and support the healthy development of ETFs by expanding the investor base and improving liquidity," Alder said.