You read the headline right.
In an effort to promote economic growth, Beijing has made it hard for Chinese to invest money oversees. (This policy also artificially strengthens the Chinese Yuan against other currencies, but that’s a post for another time.) However, as the urban component of China’s economy grows at about 10% a year, and bubbles pop up everywhere from the Shanghai stock market to the coastal realty market, something had to give.
As so often in China, what “gave” were government controls, and a number of stories (by Forbes, The Standard, and Simon World) discuss new rules that will allow Chinese to invest in the Hong Kong stock market. As Hong Kong is a global financial city, this means that Chinese dollars will be more open to investment around the world than ever before. While this is only on a trial basis, it’s enough to help the Hong Kong exchange rise 12.4% It’s also another step to China emerging as a “normal economy” whose currency floats freely.