Gov’t rolls out new central securities depository

Secretary for Economy and Finance, Lei Wai Nong, thanked authorities in Beijing for helping to establish the Macau Central Securities Depository (MCSD) and the securities market, in his speech at the launch of the facility, yesterday.

Lei said that authorities in Beijing have guided the Monetary Authority of Macao (AMCM) in coordinating the establishment of the facility. He stressed that the facility shall operate registration, trustee and clearance services according to the core principles of regulation, safety and efficiency.

The China Central Depository & Clearing Co., Ltd. (CCDC), which Lei introduced as having years of experience in developing, maintaining and holding securities, has also offered assistance for the new local securities facility.

In his speech, Lei stressed that a CSD is an indispensable piece of financial infrastructure in a mature bond market. He added that the MCSD is “a new source of momentum to Macau’s modern financial industry and adequate economic diversification.”

At the same occasion, Xu Liangdui, vice president of the CCDC, revealed that the incubation of the system started in 2019 and the CCDC swiftly assisted in the establishment of the facility.

Lei added that the launch of the facility in Macau is going to accelerate the development of modern financial services in Macau. It will also enrich the ecology of the trade and promote adequate economic diversification through empowering operational entities.

With the facility, he said, Macau will be transformed into “an important off-shore market of the Chinese currency, an international wealth management center and the portal for Chinese bonds.”

On the first day of operation, the MCSD saw two different bonds begin trading: the agencies being the Bank of China, Macau Branch and the Bank of Communications, Macau Branch. AL