BTG Pactual partners with China Southern for cross-border ETFs

BTG Pactual Asset Management announced a partnership with China Southern Asset Management on October 9, 2026, to create cross-border exchange-traded funds connecting the capital markets of Brazil and China.

Under the agreement, a new Brazilian ETF listed on B3 will invest in an index fund managed by China Southern Asset Management, providing local exposure to Chinese sectors including advanced manufacturing, technology, artificial intelligence, semiconductors, and the energy transition. In turn, an ETF listed on either the Shanghai Stock Exchange or the Shenzhen Stock Exchange and traded in renminbi will invest in BTG's BZEQ11 fund, which tracks the MSCI Brazil 25/50 index.

According to BTG, China's ETF market reached approximately RMB 6 trillion, or 850 billion dollars, in 2024, when passive equity funds surpassed active management in assets under management. China Southern Asset Management manages approximately 402 billion dollars in assets and oversees an index investment platform with 132 funds, including 68 ETFs. The firm also operates feeder ETF structures targeting markets such as Japan, Singapore, and Saudi Arabia.

The launch arrives amid rapid growth for ETFs in Brazil. Data from financial market association Anbima shows Brazilian index funds generated net inflows of BRL 42.5 billion from January to September 2026, up from BRL 7.4 billion in the same period of 2025. Across the fund industry, which took in BRL 251.7 billion over the nine-month period, fixed income led with BRL 136.1 billion and credit rights investment funds (FIDCs) captured BRL 56 billion, while a single fixed-income ETF accounted for BRL 8.9 billion of total inflows.