Written by Delilah Li, China Consultancy Team, CW CPA
In an attempt to shift Macau’s economy away from gambling, Macau’s Monetary Authority has started feasibilities studies for a yuan based securities market.
Under China’s Greater Bay Area plan, Macau, like Hong Kong, would be a free economy. Carlos Alvares, Chief Executive at Banco Nacional Ultramarino (BNU), said that creating a securities market in Macau which targets Portuguese speaking countries, would be complementary to Hong Kong’s market. . In addition, Macau’s proximity to Hong Kong and Shenzhen would allow them to take advantage of Hong Kong and Shenzhen’s experience as well as talent pool. Macau’s authorities have highlighted financial leasing, yuan clearing for Portuguese-speaking countries, wealth management and green finance as some of the segments that Macau’s securities market could focus on. Furthermore, Macau would be paired off with Zhuhai in China’s Greater Bay Area plan, a keystone city in China’s ‘One Belt One Road’ initiative.
As China continues to rise, it becomes increasingly logical for not only Macau to diversify their economy, but for companies looking to invest abroad to start investing in Mainland China. Due to Macau’s history with Portugal, opening a securities market in Macau would offer a unique opportunity for Latin American countries.
CW currently has a Brazil Desk with three Brazilian consultants working on drawing Brazilian businessmen’s interest in China. Macau’s strategic positioning in the Portuguese speaking countries resonates with CW’s ample experience in developing the Brazilian market. It offers a window of opportunities to promote Macau as the gateway city for Brazilian companies to invest in the Mainland China.