On the afternoon of 25 March 2021, the Faculty of Finance held the “40th Anniversary of City University of Macau Finance Seminar Series [14]” at the Ho Yin Convention Centre. Mr Carlos Fan from Chongwa (Macao) Financial Asset Exchange Co., Ltd. was invited as a guest speaker to share his views on “Prospects for the Development Path of Macau Bond Market”. The seminar was attended by Head of the Economic and Financial Committee of the Macao Youth Association of Patriotic Education Professor Chan Cheuk Wah, and Dean Cheung Wai Kong and Associate Dean Khong Yueng Wah of the Faculty of Finance of CityU Macau. 

 

 

Mr Fan first explained what a bond is and introduced the five elements of a bond as an IOU: face value (i.e., loan amount), coupon rate (fixed interest rate/floating interest rate), maturity date (i.e., repayment date), method of loan repayment, and other incidental powers. He pointed out that although bond issuers will pay interest periodically and repay the principal on the maturity date, investment in bonds still faces two major types of risk: credit risk (the stability of bond issuers) and interest rate risk (price fluctuations caused by interest rate changes in markets). Mr Fan also introduced the two types of bond: interest bonds (central government bonds, local government bonds, and policy financial bonds) and credit bonds (financial bonds, urban investment bonds, industrial bonds, green bonds, Belt and Road bonds, lotus bonds, and carbon-neutral bonds). He reviewed the development of domestic and overseas bond markets and pointed out that Macao’s financial services industry features a solid, stable financial system, as well as institutional advantages of being backed by mainland China and serving as a gateway to the world. He further analysed the deficiencies of the Macao bond market (lack of diversity in financial activities, lack of a sound legal foundation, and a talent shortage) and its benefits and positioning (it can function as an effective financing channel outside the banking system to drive renminbi (RMB) internationalisation, realise coordinated development, support the construction of a financial services platform between China and Portuguese-speaking countries, enrich Macao’s financial services industry, and promote Macao’s adequate economic diversification). 

 

 

 

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

 

 

This seminar was the 14th 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 has been inviting domestic and overseas corporate executives, experts and scholars from the financial services industry to provide students with information and development trends concerning modern international finance, in a bid to enrich students’ financial knowledge.