Renminbi Photo: VCG

China's Ministry of Finance (MOF) and the Macao Special Administrative Region (SAR) government on Wednesday jointly announced plans to issue yuan-denominated treasury bonds worth 3 billion yuan ($434.7 million) in Macao on September 7.

The issuance of yuan-denominated treasury bonds in Macao is an important measure by the central government to continuously support the SAR's development of modern financial industries and provide investors with safe and sound investment options, read the joint statement.

It will help enhance the attractiveness of Macao's bond market, boost the growth of the city's yuan market, promote the diversification of the local economy, and further strengthen financial cooperation between the mainland and the SAR, the statement noted.

Besides the positive role it will play to boost the growth of Macao's financial sector, issuing yuan-denominated treasury bonds in the SAR will also help promote the balanced development of the Guangdong-Hong Kong-Macao Greater Bay Area, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Wednesday.

The modern financial industry is a key project of the Macao SAR government to promote the diversified development of its economy, and also an important link to promote the construction of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin. 

The State Council issued a general plan for building the cooperation zone last September, vowing to support Macao in the innovative development of modern financial industries, such as wealth management, bonds and financial leasing, in the cooperation zone.

The MOF issued its first batch of yuan-denominated treasury bonds in Macao in July 2019. Total subscriptions exceeded 5.4 billion yuan, meaning the issue was more than three times oversubscribed, according to media reports.

Supported by the promising prospects of the Chinese economy, yuan-denominated assets maintain strong attractiveness among global investors, Xi said.

The MOF issued yuan-denominated treasury bonds worth 5 billion yuan in the Hong Kong SAR on August 10, which were 4.36 times oversubscribed.

Global Times