The 3 billion yuan bond (USD 430.2 million/MOP 3.49 billion) issued by the Chinese central government in Macau today (Wednesday) received an “enthusiastic reception” from investors, according to China’s Ministry of Finance. China’s finance ministry said it has already exceeded applications.
Kevin Wang, Director General of the Ministry of Finance, made the remarks at the launch ceremony held in Macau today.
A total of 17 financial institutions, including 11 Macau banks, participated in the sale of the 2- and 3-year note tranches, with the state-owned Bank of China Macau branch appointed as sole global coordinator.
Bank of China Deputy Governor Ling Jingzhen also revealed at today’s ceremony that the total planned issuance of this bond from investors has already exceeded RMB 5 billion.
A variety of investors, including monetary authorities, commercial banks, insurance companies and private funds in various jurisdictions such as Macau, Hong Kong, South Korea, Brazil, Portugal and other Asian and Portuguese-speaking countries, have taken an interest in this issue. he said.
The strong performance underscores global investors’ confidence in China’s social and economic development prospects, Lin added.
It is the second time the central government of China has issued sovereign bonds in Macau, following a RMB 2 billion bond issued in July 2019.
Speaking at today’s ceremony, Wang said the latest issue highlights the central government’s support to promote economic diversification from Macau’s gaming and the development of modern finance in the territory.
He believed the new issue could “enhance market confidence and morale” in Macau, and promised the central government would continue to strengthen financial cooperation between mainland China and Macau.
The development of Macau’s bond market has only begun in recent years, following the establishment in December 2018 of Chongwa (Macao) Financial Asset Exchange Co., Ltd (MOX), Macau’s sole bond issuing and listing institution. is.
Macau’s Economy and Finance Minister Lei Wai Nong said at today’s ceremony that the size of Macau’s bond market is “growing steadily” with strong support from China’s central government and provincial authorities.
He hopes that China’s Ministry of Finance will issue government bonds regularly in Macau in the future, “providing a strong stimulus to the long-term development of Macau’s bond market.”