China is opening its stock market wider to foreigners, approving a cross-border trading link today that will allow investors in Shanghai and Hong Kong to buy and sell shares on both exchanges.

China has scrapped a ceiling on investments by overseas sovereign wealth funds (SWFs) and central banks in its capital markets, as government attempts to encourage long-term foreign ownership and shore up slumping equities.

Stock markets reclaimed some ground but the euro fell on speculation Spain could move toward a debt rescue and the ECB would launch a new bond-buying plan.

CHINESE cash could soon be flooding through the International Financial Services Centre after a landmark financial deal was unveiled yesterday.

Taoiseach Brian Cowen will today hold talks with Chinese premier Wen Jiabao on growing trade and bilateral relations between Ireland and China.

Share prices were lower after Wall Street's decline, but off their lows with H-shares outperforming, amid general investor caution towards the weekend, dealers said.