The Ministry of Finance successfully issued RMB20 billion of government bonds to professional investors in Macao yesterday (50th), with a record high issuance scale and enthusiastic market subscriptions.
According to the latest data, the Ministry of Finance issued RMB50 billion of government bonds to professional investors in Macao, with a total subscription of RMB101.5 billion, a subscription multiple of 2.03 times. Among them, the 2-year term is 40 billion yuan, and the issuance interest rate is 2.40%; The five-year term is 5 billion yuan, and the issuance interest rate is 10.2%.
Ip Siu-ka, Member of the Legislative Council of the Macao SAR and Acting Chairman of the Macao Association of Banks: The issuance was very enthusiastic, and investors included banks, monetary authorities, investment banks and investment funds. In addition, its investor regions, including Macau, Hong Kong and Southeast Asia, and in particular, there are also subscriptions through the "Southbound Connect" channel of bonds, so this subscription is highly concerned and recognized by domestic and foreign bond markets.
Relevant people said that through this issuance, some "Southbound Connect" investors have opened up investment channels in Macao's bond market for the first time. At the same time, new Portuguese-speaking countries have applied for subscriptions, further expanding the range of investors and diversifying the investor structure. In addition, the issuance of 5-year RMB treasury bonds for the first time provides investors with a long-term safe and stable investment option.
Liu Jiahua, Advisor of the Monetary Authority of Macao: It fully reflects the continuous support of the state for the construction of Macao's bond market, which is of great significance to enhancing the attractiveness of Macao's bond market, supporting the development of Macao's offshore RMB market, and strengthening the cooperation between the Mainland and Macao's financial market.
Gradually establish a normal issuance mechanism for RMB government bonds in Australia
In 2019, the Ministry of Finance issued RMB20 billion treasury bonds in Macau for the first time. In 2022, the Ministry of Finance issued RMB30 billion treasury bonds again in Macao, which is the first time that Macao's "Central Securities Custody System" has provided registration, settlement and custody services for sovereign bonds, and the infrastructure standards and capabilities of Macao's bond market have reached a new level.
Liu Jiahua, Advisor of the Monetary Authority of Macao: In 2023, the Ministry of Finance issued RMB50 billion of government bonds in Macao, the second consecutive year after 2022. It reflects the gradual normalization of the issuance of government bonds in Macao, with a cumulative scale of RMB100 billion, a steady increase in the scale of a single issuance, and an increasingly rich term structure.
Industry insiders said that the continuous issuance of RMB treasury bonds by the Ministry of Finance in Macao will further enhance the international recognition and influence of Macao's bond market, and contribute to the sustainable development of Macao's modern financial industry and Macao's bond market.
Liu Jianjun, Chief Risk Officer of Bank of Communications: As a useful supplement to Hong Kong market treasury bonds, Macao market treasury bonds provide an accurate pricing basis for attracting more high-quality issuers to choose to issue bonds in Australia for financing. It will contribute to the continuous expansion of Macao's offshore RMB market and is an important carrier for Macao's financial industry to implement the development strategy of in-depth cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area.
(CCTV News Client CCTV reporter Tian Qiyong Xiao Zhongren)