To the left, José Ometo (B3). In the middle, Fujia Liu (ChinaAMC). To the right, Raymond Tam (E Fund)
The program connects B3 with the Shanghai and Shenzhen stock exchanges. According to José Ometo of B3, Brazil was the first country outside Asia to establish this type of connection with the Chinese market.
The program currently includes three Chinese equity ETFs in Brazil: PKIN11, linked to the CSI 300; TECX11, which provides exposure to the ChiNext Index; and SILK11, which tracks the MSCI China A50 Connect.
In the opposite direction, E Fund and China AMC have launched locally listed ETFs that provide Chinese investors with exposure to the Ibovespa. The structure allows investors in each country to access the other market in their own time zone, currency and local trading infrastructure.
Chinese ETFs surpass active equity funds
Fujia Liu said China’s ETF industry took approximately five to six years to accelerate. The first turning point came in 2018, when a declining market led investors to recognize ETFs as tactical and countercyclical tools. In 2019, changes to the registration system supported a broader range of thematic, smart-beta and international strategies.
Institutional participation also played an important role. According to Fujia, insurance companies, annuity funds and institutions associated with the country’s “National Team” began using ETFs, including as tools to reduce market volatility. In 2024, ETF assets surpassed active equity-fund assets in China for the first time.
The connection provides reciprocal market access
Fujia explained that the regulatory framework advanced in 2024, when Brazil’s Securities and Exchange Commission and the China Securities Regulatory Commission signed a memorandum of understanding. In May 2025, Bradesco launched TECX11, which invests in China AMC’s ChiNext ETF. ChiNext is a segment of the Shenzhen Stock Exchange focused on innovative companies.
In December 2025, China AMC launched an Ibovespa-linked ETF in China. According to Fujia, demand on the first day was equivalent to ten times the volume initially available, reflecting Chinese investors’ interest in international assets.
Raymond added that E Fund also launched an Ibovespa-linked product in Shanghai in partnership with Itaú Asset. In Brazil, the partnership resulted in SILK11, which tracks the MSCI China A50 and provides exposure to 50 large Chinese companies.
Technology replaces the previous property-driven model
Fujia said some investors still assess China through the lens of its previous growth model, which depended heavily on property investment and consumption. In her view, the country’s new growth engines are artificial intelligence, high-end manufacturing and green technology.
She highlighted that China’s artificial-intelligence value chain extends across energy, equipment, infrastructure, large language models and applications. BRIA11, launched by Bradesco during B3 Week, invests partially in CNQQ, a US-listed China AMC ETF holding Chinese technology companies traded in both onshore and offshore markets.
Raymond expanded the discussion to include battery technology, healthcare innovation, industrial automation, robotics, drones and cloud computing. According to the E Fund representative, investors in the United States, Canada and Latin America remain underweight China, while global portfolios are heavily concentrated in US technology.
TECX11 and SILK11 provide different exposures
According to Fujia, TECX11 provides access to a basket of 100 of the largest innovative companies listed on the Shenzhen Stock Exchange. The product concentrates its exposure in sectors associated with China’s emerging growth model.
BRIA11 complements this exposure by combining Chinese companies traded in domestic and international markets, with a focus on transformative technology. Fujia described the two products as part of a broader toolkit for accessing China’s most innovative companies.
Raymond explained that SILK11 has a more diversified composition. Its index combines technology and information services with companies from traditional sectors, bringing together 50 large Chinese businesses. The structure seeks to balance exposure to innovation with established companies and exporters.
Trade relations support deeper financial ties
Fujia highlighted that China is Brazil’s largest trading partner and that bilateral trade amounts to approximately US$188 billion. She said this relationship provides a solid foundation for deeper financial connections between the two countries.
Raymond said the two economies have complementary characteristics. China has capabilities in artificial intelligence, industrial automation, energy and technology products, while Brazil is a major supplier of commodities and plays an important role in food security.
ETF Connect translates part of this economic relationship into reciprocal capital-market access. By listing products within local market infrastructures, the program reduces operational barriers and allows Brazilian and Chinese investors to diversify without trading directly on a foreign exchange.
