Lionel Leong
Secretary for Economy and Finance, Lionel Leong, told the press that Macau would invest RMB20 billion in the “Guangdong and Macau Co-operation Development Fund,” which will have a guaranteed return of 3.5 percent per year.
The fund has a duration of 12 years, with Leong explaining that after seven years, it will recalculate the average investment return rate per annum.
If this rate exceeds 7.8 percent, “there will be a sharing of this extra bonus between Canton and Macau. Macau will take about 55 percent of this extra [bonus],” Leong told the press on the sidelines of the opening ceremony of the 2018 MIECF.
When asked whether the agreement will be signed this month, Leong said Macau has been in talks with Guangdong and that the relevant administrative procedures for the fund have just been completed.
He said the fund would mainly target infrastructure projects in Guangdong, which will be selected by the province.
“Because these projects are good for the Guangdong, Hong Kong and Macau Greater Bay area […] there can be certain returns to the fiscal reserves [and it is good for Macau] to integrate [with] the Greater Bay Area development,” Leong added.
“Regarding what exactly those projects will be, Guangdong is relatively more understanding. What projects we [Macau] care about more, such as infrastructure, [Guangdong] will surely choose,” he concluded.
The returns of the investment will go toward the fiscal reserve.
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