Hengqin shares surge as China releases Guangdong-Macao integration plan
Published: Sep 06, 2021 11:15 AM
An aerial view of Hong Kong-Zhuhai-Macao Bridge.Photo:Xinhua

An aerial view of Hong Kong-Zhuhai-Macao Bridge.Photo:Xinhua

A-share companies with businesses in Hengqin, located in the southern part of Zhuhai City in South China’s Guangdong Province soared in the morning trading session on Monday, as China issued a plan to build a Guangdong-Macao cooperation zone in the region.

Zhuhai Port Holdings Group Co Ltd rose by 5.11 percent by 10 am to 8.64 yuan ($1.34), nutrition products producer By-Health Co Ltd climbed 3.47 percent to 26.25 yuan and home appliance giant Gree Electric Appliances rose by 1.50 percent to 41.20 yuan.

The plan, made public on Sunday, aims to make the zone a new platform to boost Macao’s appropriate economic diversification, a new space that provides convenience to Macao residents’ life and employment, a new model to enrich the practice of “one country, two systems,” as well as a new high ground for building the Guangdong-Hong Kong-Macao Greater Bay Area, the Xinhua News Agency reported.

With a series of measures from tax breaks to a new mechanism for market access, the plan sets the goal for the zone to fully demonstrate the strong vitality and strength of “one country, two systems” by 2035, when the goal of Macao’s appropriate economic diversification will be achieved, according to Xinhua.

A number of companies operating in the area are expected to benefit from the large-scale plan. Currently, there are 29 companies in Zhuhai trading in A-share market.

Just in August, Gree Electric Appliances changed its registration address to Hengqin in what the company says “seizing the historic opportunity of the Guangdong-Hong Kong-Macao Greater Bay Area and fully playing the advantage of the location of Hengqin to improve the company’s international competitiveness.”

Meanwhile, some other public companies also have had businesses in Hengqin. Zhuhai-based Huafa Properties holds commercial land reserves equal to 330,000 square meters in Hengqin, domestic news outlet reported.

CITIC Securities analysts noted that Hong Kong-listed companies with new properties and new hotels to open this year will also be benefited, for example, operator of casinos and integrated entertainment resorts in Macao SJM Holdings Ltd and Sands China Ltd.

Global Times