China's ChiNext ETF debuts in Brazil

An exchange-traded fund (ETF) tracking the ChiNext, China's Nasdaq-style board of growth enterprises, has been successfully listed on Brazil's stock exchange B3, the Shenzhen Stock Exchange (SZSE) announced on Tuesday.

The listing marks the official launch of the ETF Connect program between the SZSE and B3, ushering in a new phase of capital market cooperation between China and Brazil, according to the Shenzhen bourse.

The two bourses signed a Memorandum of Understanding on ETF Connect cooperation in March this year as a practical measure to implement the outcomes of the 7th meeting of the China-Brazil High-Level Coordination and Cooperation Committee.

The ETF is an open-end fund listed and traded on stock exchanges, and it invests in constituent securities of specified indices or other underlying assets according to the fund contract.

Notably, ETFs tracking the ChiNext indexes have been launched in countries and regions including the United States, the Republic of Korea, Singapore and Europe.

In the next step, SZSE said it will further expand cross-border cooperation, enhance market connectivity, and advance institutional openness to support high-quality economic development.