The signing ceremony took place in Guangzhou
The Guangdong-Macau Cooperation and Development Fund was officially signed into operation in Guangzhou on Friday, in a bid to invest in key projects including those related to the Greater Bay Area effort and the two regions, as well as infrastructure for free trade zones in Guangdong.
Jointly witnessed by the Secretary for Economy and Finance, Leong Vai Tac, and Vice Governor of Guangdong Province, Chen Liangxian, the signing and launching of the agreement signified the formal operation of the Guangdong- Macau Fund in the near term, which would create new modes of collaboration between the two regions.
According to a statement issued by the Office of the Secretary for Economy and Finance, Leong gave a speech at the signing ceremony indicating that the establishment of the Guangdong-Macau Fund was the first instance of innovative financial cooperation between the two regions under the Guangdong-Macau Cooperation Framework Agreement.
Leong said he expected that the two regions would strengthen mutual communication and cooperation, implement the terms of the fund, improve the fund’s management, enhance investment returns and assess experiences in a timely manner.
The fund is a capital-protected, interest-guaranteed investment with a mechanism which allows participants to withdraw, and adheres to the “safe, effective, standard, credible” principles.
According to the cooperation agreement, the fund’s lifespan will be 12 years.
The SAR will invest a total amount of RMB20 billion from its Fiscal Reserve through various injections of funds.
In the terms of the fund, in addition to the guaranteed return of 3.5 percent on the actual investment, the SAR will be entitled to extra returns when the fund’s returns exceed a certain amount.
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