A Better Newspaper

## Overview China has launched a bond-market-connect scheme with Brazil, marking the first such cross-border capital market link between China and an emerging-market economy (SCMP, April [2026]). ## Key Details - The scheme was reported by Chinese media outlets this week (SCMP, April [2026]). - "Connect" schemes typically allow investors to bypass special permits or capital-flow controls when trading on either side's exchanges (SCMP, April [2026]). - With the Brazil link, China now maintains at least five offshore capital-market connect schemes spanning three continents, following earlier links such as those with Hong Kong (SCMP, April [2026]). ## Strategic Significance The China-Brazil connect scheme extends China's financial market integration strategy beyond its traditional Asia-Pacific and European partners into Latin America, aligning with broader efforts (seen elsewhere, such as Brazil's rare earth processing push and BYD's Brazil operations) to deepen China-Brazil economic ties. For attorneys and dealmakers, this development could open new channels for cross-border bond issuance and investment structuring between the two countries, and may signal further connect schemes with other emerging markets. ## Entities to Watch - Brazil's bond and equity markets - Additional emerging-market connect schemes - Chinese capital account liberalization policy