On July 15, the Shanghai Stock Exchange (SSE) announced new progress in its ETF Connect cooperation with the Brazilian Securities, Commodities, and Futures Exchange (B3). Itaú Asset Management of Brazil successfully launched a fund product tracking the China A50 ETF, further deepening capital market collaboration between China and Brazil. This marks the second ETF product under the SSE-B3 ETF Connect program, following the first product’s official listing in Brazil in May this year.

The SSE stated that, under the guidance of the China Securities Regulatory Commission (CSRC), it will continue to expand ETF Connect cooperation, enrich cross-border investment tools, attract more foreign capital to invest in China, and promote high-level opening of China’s capital market.

Recently, China Fund News reported that the "Itaú E Fund MSCI China A50 Connect ETF" launched by Itaú Asset Management was listed on B3, with the product code "SILK11" inspired by the "Silk Road." The product is linked to the E Fund MSCI China A50 Connect ETF (code: 563000, ticker: China A50ETF) to track the MSCI China A50 Connect RMB Index, providing Brazilian investors with a convenient tool to access opportunities in China’s market.

The MSCI China A50 Connect Index, tracked by the E Fund MSCI China A50 Connect ETF, focuses on leading A-share companies in China, aiming to reflect the performance of the 50 most representative listed companies across industries under the Global Industry Classification Standard (GICS).

The index first selects the two largest stocks by free-float-adjusted market capitalization from each of the 11 GICS sectors, then picks the remaining 28 largest stocks from the remaining pool, maintaining sector weightings consistent with the MSCI China A Index (the parent index). The index’s diversified allocation across China’s economic sectors enables Brazilian investors to gain exposure to China’s high-quality leaders with a single investment.

Both E Fund and Itaú Asset Management expressed their commitment to further exploring product innovation, cooperation, and market research. The launch of the Itaú E Fund MSCI China A50 Connect ETF represents another substantive achievement in their business collaboration, offering Brazilian investors more diverse investment options.

In late May this year, the first product under the SSE-B3 ETF Connect program was officially listed in Brazil. The product, issued by Brazil’s Bradesco Asset Management, tracks the Huatai-PineBridge SSE-SZSE 300 ETF listed on the SSE.

To date, two ETF products have been listed under the SSE-B3 ETF Connect program.

Brazil’s capital market is the largest in Latin America and the fifth-largest emerging market globally. The launch of an ETF investing in Chinese assets by Itaú Asset Management will enhance the global visibility and influence of Chinese assets, serving as a bridge for foreign investors to better understand and invest in China.