Chinese President Xi Jinping (習近平) plans to announce policies aimed at diversifying Macau’s economy beyond gaming, Reuters reported, in a nod of support as unrest continues to trouble neighboring Hong Kong.
The policies include establishing a yuan-denominated stock exchange, accelerating a yuan settlement center, which is being developed, and allocating land for Macau, Reuters said, citing unidentified government officials and company executives.
The measures are intended to mark the 20th anniversary of the former Portuguese colony’s return to Chinese rule, an event that would take Xi to Macau, the report said.
Photo: Reuters
The bourse would first focus on bond trading to encourage local and mainland companies to issue debt in the territory, Reuters said.
The exchange would also focus on start-ups and target companies from Portuguese-speaking countries to avoid direct competition with Hong Kong or Shenzhen, it reported, citing six Macau executives and Chinese officials.
Xi is to announce Macau’s decision to join the Beijing-based Asian Infrastructure Investment Bank.
Future priorities would include tourism and finance, and for Macau to be used as a venue to host international meetings, like Singapore, an official told Reuters.
Casino stocks jumped to session highs after the report, reversing declines seen, following last month’s soft gaming results.
Wynn Macau Ltd (永利澳門) shares led with a 4.7 percent gain yesterday in Hong Kong trading.
The Chinese State Council’s Hong Kong and Macau Affairs Office in Beijing did not immediately respond to a faxed request for comment yesterday. The office of Macau Chief Executive Fernando Chui (崔世安) also did not respond to an e-mail seeking comment.
The plans might have been in the works for a while. The Securities Times reported in October that a proposal for a securities exchange in Macau had been submitted to the Chinese government.
Authorities were researching how to fit Macau’s advantages into Xi’s broader Greater Bay Area plan to knit the region together more tightly, the Security Times said at the time.
The blueprint for China’s long-awaited plan to create a high-tech megalopolis on its southern coastline, rivaling California’s Silicon Valley, was unveiled in February.
Proposals include setting up a futures exchange in Guangzhou, with carbon emissions as the first product, and setting up a securities market in Macau using yuan settlement.
Macau is looking to diversify its economy as growth in China slows and the high-rollers who helped make the territory the world’s largest gaming hub look elsewhere.
Local casinos are poised for the first decline in annual gaming revenue since 2016, when Xi’s anti-corruption campaign battered revenues.
These measures come as pro-democracy protests continue to hurt the economy of Hong Kong, which is among the world’s leading financial centers.
While the polices are not intended for Macau to replace Hong Kong, China wants a contingency plan if the situation in Hong Kong worsens, Reuters said, citing people familiar with the discussions.
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