B3, Brazil's stock exchange, recently signed Memorandums of Understanding (MoUs) with the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) in China to enable ETF connectivity between the two countries through the ETF Connect program.

ETF Connect aims to expand investment opportunities through reciprocally listed ETFs between China and Brazil, ensuring a long-term relationship between the exchanges.

Initially, ETF Connect China-Brazil will enable ETFs referenced to Chinese indices to be listed on B3, combined with the listing of ETFs that follow the B3 Ibovespa in China.

Asset managers from both countries will work together for the future listing of the new ETFs. At the moment, Bradesco Asset Management and Itaú Asset Management are negotiating with counterparties in China to enable participation in ETF Connect.

(Source: Safras & Mercado, on March 27)