Itaú and Bradesco Gain Approval to Trade Ibovespa ETF in China

Move strengthens financial ties between Brazil and China as Chinese investors gain access to B3-listed funds.

Oct 24, 2025 5:20 PM

By Brazil Stock Guide – Itaú Asset Management and Bradesco Asset Management, the investment units of Itaú Unibanco (ITUB4) and Banco Bradesco (BBDC4), have received approval from the China Securities Regulatory Commission (CSRC) to list their Ibovespa exchange-traded funds on the Shanghai and Shenzhen stock exchanges.

The initiative is part of the ETF Connect program, coordinated by Brazil’s Ministry of Finance and the Securities and Exchange Commission (CVM), which allows reciprocal listings of ETFs between the B3 – Brasil Bolsa Balcão and Chinese exchanges, according to Valor Econômico. The goal is to enhance financial integration between Latin America’s largest economy and Asia’s second-largest capital market.

The approval follows the 11th meeting of the Sino-Brazilian Subcommittee on Economic and Financial Affairs under the Cosban Commission, held in September 2025. The ETF Connect was launched in May 2025, beginning with Bradesco and Itaú funds tracking Chinese benchmarks such as the CSI 300 and ChiNext, which were listed on B3. Now, the program comes full circle with Chinese fund managers E-Fund, China AMC, and China Universal listing ETFs tied to Brazil’s Ibovespa Index, which tracks the nation’s most traded and capitalized companies.

“This approval reflects the strong demand from Chinese investors for Brazilian assets,” said Bruno Funchal, CEO of Bradesco Asset Management. “We initially aim to raise about R$300 million, but the BOVB11 fund could easily exceed R$1 billion.” He expects trading to begin in mid-November.

Carlos Augusto Salamonde, Head of Global Investment Management at Itaú Unibanco, added: “We are honored to receive this approval, which opens Brazil’s market to Chinese investors at a time of strong prospects for Brazilian assets.”

According to Bloomberg, the BOVV11 ETF has returned an average of 11.9% per year in CNY over the past five years, and 35.19% in 2025 alone, compared with 11.85% for the S&P 500. The figures underscore the appeal of Brazil’s equity market to international investors amid deepening Sino-Brazilian financial cooperation.