The second batch of RMB3 billion Chinese bonds to be sold in Macau was launched yesterday, attracting 5 billion yuan of orders in the first two hours, which means it was largely oversubscribed.
Lin Jingzhen, executive vice president of the Bank of China, revealed the figures in a speech at the launch ceremony. The ceremony commenced exactly two hours after the trading of the bonds.
The bank is the sole global coordinator for the trading of this batch of bonds.
Lin also revealed there was a “wide array” of entities purchasing the bonds, from central and commercial banks to insurance and securities companies. He further revealed that orders were received from a wide range of regions, such as Greater China, Korea, Brazil and Portugal.
“This data is proof that these bonds are of high quality and carry the recognition of global investors of China’s prospects in terms of economy and society,” Lin said.
This is the second time in history that Chinese bonds have been released in Macau. The previous Chinese bond launch in Macau was in 2019.
At the launch ceremony, the Secretary for Economy and Finance, Lei Wai Nong, emphasized that this batch of bonds is the first released in Macau under the Macao Central Securities Deposits System (CSD). He described this as a sign Macau’s infrastructure for bonds has taken a step up.
He also thanked the central government’s long-time support for Macau in the area of modern finance, with particular emphasis on the development of a securities market.
The government is currently constructing the foundations for financial infrastructure, legal systems, tax privileges and talent allocation. At the launch, he also expressed hope that Beijing will regularly issue bonds in Macau in the future, so as to foster a beneficial market environment capable of attracting a larger number of market participants.
Wang Kebing, chief of the Department of Finance of the Ministry of Finance, said the central government had firmly supported the moderately diversified development and transformation of Macau’s economy. He added that the construction of the bond market and the development of modern finance are key to achieving the aforementioned goal.
Wang said Beijing’s support has been demonstrated through various activities, such as the launch of bonds for the first time in Macau in 2019.
The Bank of Communications is a co-leading, bookkeeping and financial agent bank for this batch of bonds.
