Children's interests and thinking emanate from their daily lived experiences in their families, communities and cultures. This paper substantiates the view that the construct of "funds of knowledge", understood through the lens of "cultural repertoires of practice", provides an analytical tool for early years teachers to interpret their observations of, and conversations with, young children. The paper reports findings from a qualitative case study in early childhood settings of children's interests and thinking. The methods included participant observation, interviews with teachers and children and gathering of pedagogical documentation. This paper specifically draws on and problematises the funds of knowledge and related gendered thinking that a young Chinese girl revealed through her interests and practices. It argues that although the construct of funds of knowledge provides an authentic conceptual framework to guide and justify teachers' pedagogical decision-making, it should not be accepted uncritically. The concept may raise some issues for teachers' responses to children's thinking and relationships with diverse families. Teachers and researchers have future work to undertake to understand children's complex cultural knowledges and positionings in an increasingly globalised world.