China and Japan are finally making it easier for investors to purchase shares in each other’s countries through cross-listing of exchange-traded funds (ETFs).

The Shanghai Stock Exchange and the Japan Exchange Group signed an ETF Connectivity Agreement Monday, taking a step toward easier access to ETF markets in both countries. Fund managers from both sides will be able to set up cross-border funds through China’s existing Qualified Domestic Institutional Investors and Qualified Foreign Institutional Investors mechanisms to invest in ETFs in each other’s markets.

China and Japan are pushing ahead more regulatory cooperation and speeding up market access for each other as the two nations signed a memorandum of understanding in October, said Yi Huiman, chairman of the China Securities Regulatory Commission, in a statement Monday.

Nomura Asset Management Co. Ltd., a wholly-owned subsidiary of Nomura Holdings Inc., also announced Monday that it formed a partnership with China Asset Management Co. Ltd. to participate in the ETF Connect program.

It remains unclear when the ETF link will start to operate.