A concept photo of currencies and financial market Illustration: VCG

The Macao Special Administrative Region (SAR) government said on Monday that the central government will issue 6 billion yuan ($889.20 million) of sovereign bonds in Macao on August 20.

This year marks the fifth consecutive year that the central government is issuing yuan-denominated sovereign bonds in Macao, a move that shows the central government's strong support for Macao's appropriate economic diversification and further strengthens the competitiveness of Macao's featured financial industry, according to a joint statement issued by China's Ministry of Finance and the Macao SAR government.

The announcement noted that the issuance features a more diversified structure, which is expected to improve the regular issuance mechanism while providing investors with safer and more stable yuan-denominated investment options.

The Macao SAR government said that the move fully demonstrates the importance the central government attaches to, and its support for Macao in accelerating the cultivation of the bond market, promoting the quality development of the featured financial sector, and fostering the appropriate diversification of the economy. 

The continued issuance of sovereign bonds is believed to attract a broader spectrum of high-quality issuers and international investors to participate in Macao's bond market, better leverage Macao's advantages and strategic role in the nation's opening-up, and support Macao in better integrating into and serving the overall national development, said the statement released by the Macao SAR government.

With this issuance, the cumulative yuan-denominated sovereign bond issuance in Macao will reach 27 billion yuan since the Ministry of Finance first entered the market in 2019. 

Global Times