Macau leverages modern finance to drive economic diversification

Macau is accelerating its push into modern finance to fuel economic diversification and deepen integration within the Greater Bay Area, Secretary for Economy and Finance Anton Tai said at the 4th Guangdong-Hong Kong-Macao Greater Bay Area Finance Forum held yesterday at Wynn Palace.

In light of Macau’s 3rd Five-Year Plan commencing next year, Tai pledged that the government will continue leveraging modern finance to drive economic growth and deepen ties within the Greater Bay Area. “We will actively play a more important role in the construction of the cooperation zone and the GBA,” he said.

On fostering closer regional integration, Tai highlighted the importance of the Hengqin Guangdong-Macao In-Depth Cooperation Zone, and detailed the local government’s active role in promoting the “high-level construction of the cooperation zone” to build an “integrated development pattern between Macau and Hengqin, and lay a solid foundation for regional financial synergy.”

The Finance Secretary also reiterated that the local government is “accelerating growth in emerging financial sectors, including bond markets, wealth management, and fintech, to align Macau with China’s ‘dual circulation’ development model.” He added, “The SAR government will continue to deepen cooperation mechanisms with the mainland and Hong Kong, such as the Cross-border Wealth Management Connect, to promote integration of wealth management markets.”

For context, the Cross-border Wealth Management Connect (WMC) is a program within the GBA.

The WMC enables Macau residents to invest in mainland China (Northbound) and mainland residents to invest in Macau (Southbound), using banks as intermediaries with closed-loop fund transfers. It offers diversified financial products, including funds and bonds, with an increased personal quota of RMB3 million.

Tai then linked these regional initiatives to President Xi Jinping’s recent inspection tour of Guangdong and his call to deepen cooperation among Guangdong, Hong Kong, and Macau.

According to a strategy outlined in its recent recommendations for drafting the 15th Five-Year Plan (2026–2030), Guangdong province intends to position itself as the “main force” and “driver” of GBA development.

The blueprint, released yesterday, aims to transform the 11-city cluster, including Macau and Hong Kong, into an innovation and industrial hub, and highlights the need to improve infrastructure connectivity, align regulatory frameworks, and strengthen people-to-people exchanges between regions.

According to mainland reports, key platforms such as Qianhai, Hengqin, and Nansha will lead regional integration as pilot zones for major reforms and projects. In Hengqin, authorities plan to accelerate integration with Macau by advancing a “separate line management” system, which enforces distinct personnel and tax rules separately for Macau and Hengqin, and for Hengqin and other customs territories in China.

The second phase of the Guangdong-Macao In-Depth Cooperation Zone will focus on developing four new industries: sci-tech research and high-end manufacturing, traditional Chinese medicine, cultural tourism and conventions, and modern finance.

Bond market upgrades

Regarding the Central Securities Depository System of Macao (MCSD), Tai revealed yesterday that upgrades are being made and cited progress on drafting a new Securities Law intended to build a market “that connects with the mainland and links with the international market.”

He also announced a revised Investment Fund Law will take effect next month to further enhance Macau’s fund industry legal framework. Fintech advances include an upgraded instant payment and settlement system covering all three currencies used in the GBA. Macau also signed an agreement with China’s central bank to link fast payment systems.

“We have signed a memorandum of understanding with the People’s Bank of China to jointly promote the interconnection of fast payment systems between the Mainland and Macau; and under the Guangdong-Hong Kong-Macao Greater Bay Area Fintech Innovation Regulatory Cooperation Mechanism established jointly with the People’s Bank of China (PBoC) and the Hong Kong Monetary Authority (HKMA), we are cooperating to promote cross-border fintech project testing by financial institutions in the three regions,” he added.

Regarding digital financial infrastructure, Tai highlighted ongoing “small-scale transaction tests” and “sandbox” trials for the “Digital Pataca,” and indicated that steady progress has been made.

In a separate address, Ip Sio Kai, chairman of the Macau Association of Banks and deputy general manager of Bank of China Macau Branch, highlighted new policy opportunities.

The senior financier remarked that progress is being made in “accelerating the release of policy dividends and building a new pattern of cross-border asset management cooperation,” referring to the 2026 launch of the Macau Speculative Fund Law. This law aims to attract international family offices and asset management firms, establishing Macau as a “cross-border wealth management center.”

Meanwhile, financial scholar Wu Xiaoqiu, former vice president of Renmin University of China, praised the “1+4” diversification plan during the forum. On the sidelines, Wu told reporters, “Exploring a development path of moderate industrial diversification may play an important role in addressing future challenges,” urging Macau to focus on niche markets by offering specialized services such as private banking and cross-border wealth management.