Is China Prepping Macao as the Financial Alternative to HK?
- President Xi Jinping is set to announce a number of policies during his visit to Macao next week.
It looks like China might be prepping Macao to be the new Hong Kong. According to people close to the matter, Chinese President Xi Jinping will visit Macao next week, where he will reveal a number of plans to diversify the autonomous region away from being dependent on casinos into a financial center.
The policies that are set to be launched in Macao include the establishment of a yuan-denominated Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term, according to a report from Reuters. A renminbi center, which is already in the works, will also be accelerated under the policies.
The stock Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term will be focused on bond trading in the beginning, in order to encourage local and Chinese companies to issue debt in the city, according to a Chinese official familiar with the plans.
Will Macao replace Hong Kong?
Officials and executives in Macao are seeing this move as a reward for the region for not engaging in the anti-government protests that have brought serious disruption to Hong Kong over the past six months.
Speaking to the news outlet, one Chinese official who requested anonymity said: “The financial industry used to be an idea that we reserved for Hong Kong. We used to give all the favorable policies to Hong Kong. But now we want to diversify it.”
According to officials speaking to Reuters, the plan is not for Macao to replace or undermine Hong Kong, but to be a contingency plan in the event that the situation in Hong Kong worsens.
“Xi Jinping has made very clear that he wants a diversified Macau economy,” added another Chinese official who did not want to be identified. “The future focus will be on tourism and finance, to make it a center to host international meetings like Singapore.”
Political commentator and retired Macao university professor Larry So commented: “This is the candy that Hong Kong did not want. It is a gift for Macau, for Macau being a good boy.”
It looks like China might be prepping Macao to be the new Hong Kong. According to people close to the matter, Chinese President Xi Jinping will visit Macao next week, where he will reveal a number of plans to diversify the autonomous region away from being dependent on casinos into a financial center.
The policies that are set to be launched in Macao include the establishment of a yuan-denominated Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term, according to a report from Reuters. A renminbi center, which is already in the works, will also be accelerated under the policies.
The stock Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term will be focused on bond trading in the beginning, in order to encourage local and Chinese companies to issue debt in the city, according to a Chinese official familiar with the plans.
Will Macao replace Hong Kong?
Officials and executives in Macao are seeing this move as a reward for the region for not engaging in the anti-government protests that have brought serious disruption to Hong Kong over the past six months.
Speaking to the news outlet, one Chinese official who requested anonymity said: “The financial industry used to be an idea that we reserved for Hong Kong. We used to give all the favorable policies to Hong Kong. But now we want to diversify it.”
According to officials speaking to Reuters, the plan is not for Macao to replace or undermine Hong Kong, but to be a contingency plan in the event that the situation in Hong Kong worsens.
“Xi Jinping has made very clear that he wants a diversified Macau economy,” added another Chinese official who did not want to be identified. “The future focus will be on tourism and finance, to make it a center to host international meetings like Singapore.”
Political commentator and retired Macao university professor Larry So commented: “This is the candy that Hong Kong did not want. It is a gift for Macau, for Macau being a good boy.”