Macao Daily - Scholars: Macao should Set up Financial Assets Exchange
Press conference was held yesterday
Macao’s financial industry can gain a foothold in Asia Pacific by leveraging its geographical advantages
Pro-Rector Ip Kuai Peng of the City University of Macau believed that Macao should set up its own financial assets exchange to sustain its position as an offshore financial center. The SAR government should contact Mainland departments concerned proactively and discuss on issues including the establishment of a Macao exchange, products to be traded and operating model etc. The industry should plan for details of the operation of the exchange. The two parties should work together to promote the long-term development of FinTech and the financial market in Macao.
An RMB Stock Exchange will Increase RMB Retained
The press conference organized by the City University of Macau on the research report “Financial, Technology, Government Support and the Development of Macao Financial Market in the Background of Guangdong-Hong Kong-Macao Greater Bay Area” was held on the CityU Golden Dragon campus. Pro-Rector Ip Kuai Peng, Associate Professor Lou Shiyan from the Faculty of Finance, Program Coordinator Li Hongjiang of the School of Law, Director Sheng Jian of the Research Management Office and researchers Chen Peiyi and Xiao Mingyu attended the event.
Ip Kuai Peng pointed out that the research report started with a summary of the characteristics, content, issues and trends of the financial integration of the Guangdong-Hong Kong-Macao Greater Bay Area. In the long term, setting up a cross-border RMB clearing center is an important opportunity for Macao’s financial industry and will provide a solid foundation for Macao to develop FinTech and its financial market in the background of the Greater Bay Area. Establishment of an RMB stock exchange will enable the RMB to be better retained in Macao and increase the amount of RMB in circulation in Macao. In addition, in conjunction with the Macao platform initiative, it can stimulate the financial cooperation between the Mainland and Portuguese-speaking countries, which will help attract investment by Portuguese-speaking countries and countries along the “Belt and Road” in Macao, forming an overseas RMB market, creating more business transactions settled in RMB, and promoting the internationalization of RMB.
A Win-win Situation of Inter Listing
Loi Shiyan suggested that in view of Macao’s development of FinTech, the need to set up a stock exchange and the feasibility of doing so, four strategies could be considered for the development of Macao’s financial market: 1. leveraging electronic trading technologies to help Macao overtake others. The Macao Exchange does not need to develop its own trading platform. Instead, it can directly introduce or lease one from mainstream companies, avoiding unnecessary detours. 2 Providing innovative financial services to fill the gaps in the country's financial market. Macao's featured finance can be leveraged to develop financing lease bonds and green bonds, actively develop derivatives trading and establish a special derivatives exchange. The Macao Electronic Exchange should also work closely with Mainland markets and open up to listing of stocks, bonds and futures products actively traded in the mainland and to listing of their derivatives.
3. Leveraging Macao’s geographical advantages to gain a foothold in the Asia Pacific region. Macao can take the initiative to contact various trading institutions in the region to facilitate inter listing and trading of products and work together to achieve a win-win situation. 4. Use the electronic exchange as an opportunity to develop related supporting industries.
Source: Macao Daily.