China and the United Kingdom are exploring the launch of a stock trading link between the Shanghai and London stock exchanges, highlighting the strong desire on both sides to strengthen cooperation in the capital markets.

A document issued by the UK government's finance ministry said that Shanghai and London had agreed to carry out a feasibility study for the connect scheme between the two bourses, Reuters reported on Monday.

The announcement came ahead of a speech by the British Chancellor of the Exchequer George Osborne on Tuesday at the Shanghai Stock Exchange.