Investment

MOP95 billion’s worth of securities managed by local central bank’s subsidiary

Securities with a total value of nearly MOP95 billion are currently under the management of the Macao Central Securities Depository (MCSD), a subsidiary of the Monetary Authority of Macao (AMCM), as announced in a statement yesterday.

This portfolio of securities includes the five-year national bond issued by Beijing for the third time in Macau, and the government bond issued by Guangdong Province, also for the third time in Macau.

The MCSD revealed that as of yesterday, over 100 entities hold participant accounts at the MCSD, comprising 34 from the local market and 67 from the external market.

Reflecting on its activities in the past year, the AMCM noted that last April, together with MCSD, it visited two International Central Securities Depository Institutions (ICSD) headquartered in Europe. It is currently optimizing the construction of the Macau Central Securities Depository System in accordance with international practices, with the aim of attracting more overseas institutions to participate in Macau bonds.

Yesterday, the MCSD held an award ceremony to recognize the contributions of entities in the local securities market. MCSD presented six awards at the event, including the existing Excellent Underwriting Agency, Excellent Issuing Agency and Excellent Overseas Marketing Agency awards, as well as the newly-added ESG Outstanding Contribution Agency, Excellent Secondary Market Trading Institution and Excellent Professional Service Institution awards. A total of 27 local and overseas institutions won awards.

AMCM head Chan Sau San emphasized in his speech that the registration system, with information disclosure as its core, was officially implemented in November last year. It has simplified the bond issuance process while protecting investors, aligning practices in the Macau bond market with global financial market standards and enhancing the Macau market’s competitiveness.

He further recapped that the AMCM had revised guidelines related to the bond business and completed industry consultation on Macau’s first Securities Law. The goal is to establish a legal system that promotes efficient market operation in line with international standards, to enhance investors’ understanding and confidence in the Macau bond market.

In addition, he said the authority had launched a bond repurchase mechanism and a financial bill issuance and trading system (MTS) to create conditions for activating the secondary market for financial bills.

Regarding the Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area, the local government promulgated an amended version of the implementation details. This will allow Macau banks and registered financial institutions to provide securities services in Macau to operate within the scheme. However, all activities must comply with the implementation details.

Investors will be allowed to purchase a wider range of eligible financial products, and their personal investment limit has been increased from RMB 1 million to RMB 3 million. If an investor chooses to invest through both banks and securities companies simultaneously, the individual investment limits corresponding to the two channels are RMB 1.5 million each.

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