China and Brazil Update MOU on Securities and Futures Regulatory Cooperation

Financials Author: Notrice Jun 11, 2024 06:16 PM (GMT+8)

On June 7, the China Securities Regulatory Commission (中国证监会) announced the updated signing of the "Memorandum of Understanding on Securities and Futures Regulatory Cooperation" with the Brazilian Securities Commission on June 6 in Beijing. This update marks a new phase in the regulatory cooperation between the securities and futures regulatory bodies of China and Brazil.


A CSRC spokesperson highlighted that the CSRC and the Brazilian Securities Commission have maintained a long-standing cooperative relationship, creating a favorable regulatory environment for collaboration in their respective capital markets. The recent update adjusts the Memorandum of Understanding originally signed in 1997 to better meet the needs of capital market development and cross-border regulation, further strengthening China-Brazil regulatory cooperation in capital markets.

Currently, the CSRC has signed bilateral regulatory cooperation memoranda of understanding with securities and futures regulatory bodies in 67 countries and regions, establishing mechanisms for cross-border regulatory and enforcement cooperation.

The signing coincides with the visit of the Brazilian Vice President to China. During the June 6th meeting of the China-Brazil High-Level Coordination and Cooperation Committee, the two countries signed financing and credit agreements totaling USD3.74 billion (approximately BRL 19.68 billion). These agreements were reached between Brazil's National Bank for Economic and Social Development (BNDES), the Bank of Brazil, and the Ministry of Finance with Chinese financial institutions and the Asian Infrastructure Investment Bank (AIIB).

Additionally, the BNDES and the China-Latin America Production Capacity Cooperation Investment Fund (Claifund) signed an agreement on Thursday to facilitate access to USD 10 billion (approximately BRL 52.87 billion) from Chinese funds for investments in Latin America.

The China-Brazil High-Level Coordination and Cooperation Committee (Cosban), established 20 years ago by then-President Lula of Brazil, is currently co-chaired by Chinese Vice President Han Zheng and Brazilian Vice President Geraldo Alckmin. During the meeting, Han Zheng stated that in the face of unprecedented global changes, both parties should enhance strategic communication, deepen mutually beneficial cooperation, and advance the comprehensive strategic partnership between China and Brazil, contributing to international fairness and justice and global peace.

Brazilian Vice President Alckmin emphasized Brazil's commitment to maintaining multilateralism in the High-Level Coordination and Cooperation Committee and other forums, such as the G20 summit in Rio de Janeiro this November, and jointly promoting global sustainable development and governance system reforms.

At the meeting, both sides also expressed their commitment to jointly promoting the Belt and Road Initiative in alignment with Brazil's "reindustrialization" and the new Economic Acceleration Growth Plan, opening a new chapter in China-Brazil mutually beneficial cooperation.