Macau bond market hits 962 issues worth MOP996 million by July

The Monetary Authority of Macau (AMCM) reported that by the end of July, 962 bonds valued at MOP995.6 million had been issued or listed in Macau, stating that it is enhancing the bond market infrastructure to attract more issuers to participate locally.

This event marked the issuance of RMB6 billion in central government bonds in Macau, contributing to the region’s growing bond market.

According to the AMCM, the current bond market in Macau features various types of bonds, including treasuries, local government bonds, Tier 2 capital bonds, corporate bonds, and financial bonds, issued in currencies such as Renminbi, Hong Kong dollars, Macau patacas, and US dollars.

The regular public broadcaster TDM’s radio program hosted a discussion yesterday morning with a senior official from the monetary authority and local scholars on the development of Macau’s bond market.

“The special administrative region (SAR) government has actually commenced drafting Macau’s first Securities Law, which will establish fundamental regulations for the securities market and all activities within the bond market,” said the AMCM official.

“We aim to enhance investor confidence in Macau’s bond market and create conditions for its infrastructure to connect with international systems.”

The official also highlighted future efforts to improve Macau’s Central Securities Depository (CSD), stating, “We will gradually deepen its interconnection with Hong Kong, continuously refine regulatory guidelines for bond operations to promote market efficiency, and actively encourage other mainland provinces, municipalities, and policy banks with offshore financing needs to issue bonds in Macau.”

Additionally, the bureau plans to strengthen promotional efforts to diversify the range of issuers in the bond market.

In response to a listener’s concern about financial talent cultivation, the AMCM official disclosed that Macau’s Talent Development Committee has released a list of critically short-staffed professional positions. This list underscores talent shortages in key modern financial sectors, including the bond market and fintech.

“The AMCM will continue to engage with the Talent Development Committee,” she stated, “providing insights to help facilitate the recruitment of financial professionals.”

Regarding the development of Macau’s bond market, scholars participating in the radio program emphasized the critical need to enhance talent cultivation. They proposed adopting an apprenticeship system in which overseas professionals or experienced individuals mentor local talents.

“We might utilize individuals from overseas or those with substantial experience in this field to serve as ‘locomotives,’ guiding Macau professionals with potential,” one scholar stated. “This approach would effectively transfer hands-on operational expertise to them.”

Another scholar highlighted the importance of strengthening industry communication and leveraging regulatory sandboxes.

“By identifying market gaps and demands, we can precisely cultivate high-potential niche financial projects,” he noted. He also suggested that by managing risks and integrating platforms for leasing and purchasing, Macau can gradually develop its distinctive financial market and talent pool.

“While Macau’s financial development lags behind some regions, it has been catching up in recent years. Integrating into the Guangdong-Hong Kong-Macau Greater Bay Area also brings competition, requiring Macau to find its niche and pursue differentiated development.”

Overall, it was emphasized that as neighboring regions offer numerous finance-related disciplines and programs, and as Macau introduces more specialized financial courses, the region can effectively cultivate relevant talent. Additionally, there were suggestions to lower barriers in the bond market by adopting approaches seen in nearby areas, such as issuing retail bonds. “The purpose is to educate the general public, making society aware that bonds exist and that ordinary citizens can invest in them, thereby increasing public understanding,” one scholar explained.

The program highlighted that Macau can leverage its unique position as a platform for trade and economic cooperation between China and Portuguese-speaking countries to develop distinctive financial services.

“When developing specialized financial services, Macau should avoid engaging in vicious competition with other regions,” one scholar advised. They suggested that the government enhance communication with the industry to explore areas not yet tapped by neighboring regions, thereby positioning the development of a specialized financial market more effectively.

Another scholar emphasized the importance of developing green bonds, stating, “This is an inevitable trend, and we can expect rapid growth in this sector.”

They underscored that it would be worthwhile for Macau to continue intensifying its efforts in the area of green finance.

Notably, the AMCM previously announced that Shenzhen will issue its first offshore RMB-denominated municipal government bond in Macau in the first half of this month. This bond is expected to be valued at RMB1 billion and will focus on green initiatives addressing climate change, specifically targeting professional investors.