On the afternoon of 29 April 2021, the Faculty of Finance held the “40th Anniversary of City University of Macau Finance Seminar Series [19]” at the Ho Yin Convention Centre. Mr Edward Xu, Retail Banking Director of Well Link Bank, was invited as a guest speaker to share his views on how to “Build Up A Financial Platform for Macau’s Wealth Prospect”. 

 

 

 

Mr Xu first reviewed Macao’s economic development. He pointed out that although Macao’s GDP in 2020 was only 194.4 billion patacas due to the COVID-19 pandemic, the total deposits in Macao’s banking system amounted to 1,260 billion patacas and the loan-to-deposit ratio reached 57.0%, with the non-performing loan ratio being only 0.37%. Macao has a relatively small economy, which is export-oriented and service-driven, and gross gaming revenues account for more than 60% of local GDP. As COVID-19 swept the globe and major economies shrank, Macao’s GDP decreased by 56.3% in 2020 and the unemployment rate among local residents was 3.7%. Therefore, Macao is in urgent need of economic diversification. 

 

 

 

Mr Xu put forward the idea of building a wealth management platform with Macao characteristics. Macao has significant advantages in financial development. The financial services industry, one of Macao’s three pillar industries other than gaming and tourism, currently accounts for 6.5% and there is much room for growth. Banks’ capital adequacy ratio stood at 14.8%, and the non-performing loan ratio was only 0.37%, reflecting good asset quality. There are no capital and foreign exchange controls in Macao, so capital can flow freely. In addition, Macao holds sufficient foreign exchange reserves. Macao also features a limited number of taxes, low tax rates, a light tax burden, and the implementation of taxation at source. The supervision rules in Macao are in line with international standards. Moreover, Macao enjoys preferential policies and support from the government, as well as close connections with the Hengqin Free Trade Zone and Portuguese-speaking countries. With the increase in residents’ income, Macao’s wealth management business will enter a period of rapid development and encounter tremendous opportunities. The implementation of the Memorandum of Understanding on the Launch of the Cross-Boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area will not only boost the financial and investment development of the Greater Bay Area but also guide industrial upgrading and enhance the supporting and leading role of the Greater Bay Area in China’s economic development and opening up to the outside world. The signing of the memorandum is conducive to renminbi (RMB) internationalisation; what is more, it expedites the construction of a stock market using RMB for settlement and a green financial platform in Macao to support the development of financial services with Macao characteristics. It is of great significance for Macao to strengthen cooperation with Portuguese-speaking countries, encourage the launch of sector funds and dedicated funds, and build an international RMB clearing centre and a financial services platform. 

 

 

 

Students showed great interest in the seminar and actively raised questions, which were all answered by Mr Xu in detail. The seminar ended amid warm applause from students. 

 

 

 

This seminar was the 19th financial seminar held by the Faculty of Finance in celebration of the 40th anniversary of CityU Macau. Maintaining the University’s teaching philosophy of integrating enterprises, universities, and research institutions, the Faculty of Finance invited local corporate bank executives and financial experts to provide students with information and development trends concerning wealth management, in a bid to enrich students’ financial knowledge.