The skyline at night of the Macao Special Administrative Region, China Photo: IC

The government of the Macao Special Administrative Region (SAR) has employed a global consultancy to study the establishment of a yuan-denominated securities exchange, Leong Vai Tac, director of the Department of Economy and Finance of Macao, told a meeting on Thursday.

Stocks connected to the concept of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) closed higher on Thursday on the Shenzhen bourse. Zhuhai Winbase International Chemical Tank Terminal Co rose 5.82 percent, Guangdong Great River Smarter Logistics Co increased 3.06 percent and Guangdong-based Dongjiang Environment Co was up 1.47 percent.

According to the Closer Economic Partnership Arrangement signed between of Macao and relevant authorities of the Chinese mainland in 2017 and the development plan for the GBA released in February, the Macao SAR government is conducting research on establishing a yuan-denominated securities market, Leong noted, according to a report by stcn.com.

When asked when the feasibility report will be released, Leong said the study is divided into several parts. The consultancy will not only study the Macao market but also conduct research into financial institutions in adjacent areas and their level of compliance with global standards.

The official said that more work needs to be done such as legislation, staff training and hardware and software systems to set up an exchange, according to the report. 

He said that the Monetary Authority of Macao is expected to carefully study the feasibility report based on real local conditions. A new bourse should meet the country's needs and build on Macao's advantages.

Industry insiders told the Global Times that the move will help drive the internationalization of the yuan, and the new exchange is likely to play a supplementary role in advancing the Chinese capital market.

The Monetary Authority of Macao confirmed with the Global Times on Sunday that it had authorized a global consultancy to conduct a feasibility study on establishing a new bourse in Macao and relevant work was being conducted in an orderly manner. Given that there are mature financial centers nearby, Macao must fully understand its own advantages to break through in this sector and achieve differential development, the authority said. It declined to elaborate.

A plan to establish a Macao securities exchange has been submitted to the central government, He Xiaojun, director of the Guangdong Local Financial Supervision and Administration Bureau, told a forum in Guangzhou on Saturday.

Leong said that he knew from media reports that relevant departments in South China's Guangdong Province have submitted a plan to the central government but he was unlikely to comment on that. 

So far, the Macao SAR government has not submitted a plan to the central government, according to Leong.