Ceremony of the Central People's Government's RMB sovereign bond issuance in Macao 2022
The ceremony of the Central People's Government's RMB sovereign bond issuance in Macao took place at the Complex of Commerce and Trade Co-operation Platform for China and Portuguese-speaking Countries on 7 September, 2022. The Chief Executive of the Macao SAR, Mr. Ho Iat Seng, the Director of the Liaison Office of the Central People’s Government in the Macao SAR, Mr. Zheng Xincong, the Commissioner of the Ministry of Foreign Affairs of the PRC in the Macao SAR, Mr. Liu Xianfa, the Director-General of the Finance Department, the Ministry of Finance of the PRC (MOF), Mr. Wang Kebing, the Secretary for Economy and Finance of the Macao SAR Government, Mr. Lei Wai Nong, and representatives from financial institutions attended the ceremony. Mr. Lei Wai Nong, Mr. Wang Kebing, the Executive Vice-President of Bank of China, Mr. Lin Jingzhen, and the Executive Vice-President of Bank of Communications, Mr. Guo Mang spoke at the ceremony.
In his speech, Mr. Lei Wai Nong expressed sincere gratitude to the Central Government for its long-standing support for Macao's modern financial services, especially the development of the bond market. With the support of the Central Government, Macao's bond market has been expanding steadily with a wider variety of debt instruments. At the moment, the Macao SAR Government has been enhancing the foundation for the bond market in terms of financial infrastructure, legal system, tax incentives and talent cultivation. Meanwhile, he looked forward to regular issuance of sovereign bonds in Macao by the MOF in the future, creating a favourable market environment and attracting more market participants.
Mr. Lei pointed out that it was the first time for Macao’s Central Securities Depository (CSD), since its launch, to offer issuance, registration, settlement and custody services for a sovereign bond. Concurrently, the sovereign bond was listed locally to facilitate subscription from international investors. These signified another milestone in the development of the bond market in terms of higher standards and capacities of the financial infrastructure, cementing Macao's position as the platform for financial services between China and Portuguese-speaking countries.
In his speech, Mr. Wang Kebing addressed that the Central Government is firmly committed to supporting proper economic diversification of Macao, with the key lay in the development of the bond market and modern financial services. The MOF proactively supports and cooperates with the development of Macao’s bond market. Specifically, its first issuance of RMB2 billion sovereign bonds in Macao for the 20th anniversary of Macao’s return to the motherland has encouraged the issuance of bonds in Macao by different issuers. With the MOF’s support, the first Mainland municipal government bond was successfully issued by Guangdong province in Macao last year, which has further broadened the range of issuers. Besides, the MOF has endorsed the China Central Depository and Clearing Corporation Limited to support the establishment of Macao’s CSD, strengthening the safety, standardisation and recognition of the fundamental financial infrastructure for the bond market.
Mr. Wang remarked that the MOF issued RMB3 billion sovereign bonds immediately after the pandemic abated in Macao. This was to implement the Central Government's decision to constantly promote proper economic diversification and modern financial services in Macao. In addition to deepening and broadening the scope of Macao’s bond market, the successful issuance of the RMB sovereign bond would boost market confidence. The MOF would continue to strengthen economic and financial cooperation with Macao according to the Central Government’s decision.
This was the second sovereign bond issuance by the MOF in Macao after its first issuance in 2019. The bonds were offered to professional investors with an issuance size of RMB3 billion.
