According to a joint statement by China’s Ministry of Finance and the Macau government, the central government will issue 3 billion yuan (approximately MOP3.5 billion) in government bonds in Macau on Sept. 7 to promote the development of the SAR’s “modern financial sector.” We support.

RMB-denominated bonds provide investors with safe, stable and “fresh” diversified investment options, expand investor reach, enhance the attractiveness of Macau’s bond market, and promote the development of the local bond market. and is expected to support the development of the local RMB market. It will not only strengthen financial cooperation between Macau and mainland China, but also stimulate the diversification of the local economy, the announcement said.

In addition, the issuance of government bonds, which the Macau government sees as an important initiative, aims to attract more bond issuers and international investors to participate in the development of the local bond market. currency.

The Macau bond market is still fairly new, marked by the 2018 establishment of Chongwa (Macao) Financial Asset Exchange (MOX), Macau’s licensed financial asset trading platform, Calvin Chui said. Experts such as I believe it has a promising future.

As Chairman of the Board of Directors of the Macau Financial Law Association, Mr. Chui said: Macau bond market “We may be affected, but we are resilient and we are still in a very good position.”

A bond is a type of security used in mutual funds and private investments in which the issuer (debtor) owes the holder (creditor) a debt and is obliged to repay the principal on maturity, subject to conditions. is obligated to pay interest. From the issuer’s point of view, this is a way of raising funds. Government bonds are issued by the central government to support government spending.

July 2019, Mainland China issues first offshore sovereign bond in Macauis denominated in RMB and is worth RMB 2 billion.

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