In order to facilitate Macao’s integration in the Guangdong-Hong Kong-Macao Greater Bay Area effort and to implement earnestly the Guangdong-Macao Cooperation Framework Agreement, the signing ceremony of the Guangdong-Macao Cooperation and Development Fund took place in Guangzhou today (4 May). The ceremony, which was jointly witnessed by the Secretary for Economy and Finance of the Macao Special Administrative Region (MSAR), Mr Leong Vai Tac, and Vice Governor of Guangdong Province, Mr Chen Liangxian, symbolised the fund’s immediate inception and operation.
Leong Vai Tac indicated in his speech given in the signing ceremony that the setting up of the Guangdong-Macao Fund was the first inspiring achievement of innovative financial cooperation between the two regions under the Guangdong-Macao Cooperation Framework Agreement. The signing and launching of the agreement today denoted the formal operation of the Guangdong-Macao Fund in the near term, which would create new modes of collaboration between Guangdong and Macao, enrich the contents of cooperation and reinforce the level of cooperation. With the help of Guangdong’s affluent project resources and experience in managing project investments, asset diversification, capital protection and value appreciation of the MSAR Fiscal Reserve would be effectively enhanced. The Guangdong-Macao Fund, as an important entry point for Macao and Guangdong Province to participate jointly in the Guangdong-Hong Kong-Macao Greater Bay Area effort, would invest in high-quality key projects including those related to the Greater Bay Area effort and beneficial to the economy and livelihood of the two regions as well as infrastructure of free trade zones in Guangdong, in order to further foster Macao’s participation in the Guangdong-Hong Kong-Macao Greater Bay Area effort, integrate in the country’s master development plan and preserve Macao’s long-term prosperity and stability.
Leong Vai Tac expected that Guangdong and Macao would strengthen mutual communication and cooperation in the future, implement earnestly the terms of the Guangdong-Macao Fund, improve continuously the fund’s management, enhance investment returns and assess experiences timely, thus playing a leading role in promoting more comprehensive financial cooperation as well as collaboration in other areas between Guangdong and Macao.
Chen Liangxian indicated that the joint establishment of the fund between Guangdong and Macao would be an important initiative to implement the requirements of General-Secretary Xi Jinping, grasp the enormous opportunity of the Guangdong-Hong Kong-Macao Greater Bay Area effort, accelerate the progress of relevant tasks and serve as a pilot demonstration in the country. As a symbolic cooperation initiative between Guangdong and Macao, the Guangdong-Macao Fund would contribute actively in promoting infrastructure interconnection in the Guangdong-Hong Kong-Macao Greater Bay Area, supporting major platform effort, nurturing emerging industries, developing jointly a quality life environment suitable for dwelling, working and travelling, thus connecting more closely the development of Macao and Guangdong.
The Guangdong-Macao Fund was a capital-protected, interest-guaranteed investment with a mechanism for the participants to withdraw from involvement, which would strictly adhere to the “safe, effective, standard, credible” principles. This would be an important step taken for further fostering financial innovation in the Guangdong-Hong Kong-Macao Greater Bay Area, promoting cross-border renminbi business and deepening Guangdong-Macao cooperation. According to the cooperation agreement, the fund’s lifespan would be 12 years. As the financial investor, Macao would invest a total amount of RMB20 billion from its Fiscal Reserve by various batches of injection. Based on relevant terms, in addition to the guaranteed return of 3.5% on the actual investment, Macao would be entitled to extra returns when the fund’s returns exceed a certain amount, thus generating more decent return to the MSAR Fiscal Reserve.
Other officials who attended the signing ceremony included Mr Zhong Xuanhui, Vice Secretary-General of Guangdong Provincial Government and Mr Chan Sau San, Chairman of the Board of Directors of the Monetary Authority of Macao.