Central gov’t to issue RMB5b of treasury bonds in Macau

China’s Ministry of Finance said it will issue a sovereign bond of RMB5 billion yuan in Macau on September 20, a move considered to support the development of modern finance in Macau and promote the city’s economic diversification.

The announcement was made as a statement jointly issued by the Chinese Ministry of Finance and the Macau Special Administrative Region (SAR) government.

“Issuance of bonds in Macau illustrates the Central Government’s ongoing support to the development of a modern financial industry in Macau as a major initiative to promote the city’s appropriate economic diversification,” the statement added.

In another statement issued solely by the SAR government, the government boasted that “the latest issuance highlights the Central Government’s support to Macau’s efforts to develop a modern financial industry and to promote the city’s appropriate economic diversification.”

The government believes “the issuance of sovereign bonds in Macau will further enhance the attractiveness of the city’s bond market, help the development of the city as an offshore renminbi market, and strengthen financial cooperation between the mainland and Macau.”

Speaking on the sidelines of an event yesterday, Secretary for Economy and Finance Lei Wai Nong said that national bonds are “high-quality bonds,” expressing his gratitude to the Ministry of Finance for its continuous support to the development of Macau’s bond market.

Lei hopes to bring together institutional investors and bond issuers to participate in bond issuance in Macau and make good use of Macau’s “dual circulation” characteristics to combine international capital with mainland development.

The first issuance of its kind took place in July 2019, at an amount of RMB2 billion. A subsequent issuance took place in 2022, which was worth RMB3 billion. The three issuances will equate to RMB10 billions worth of bonds issued.