The Chinese government has announced a new plan to diversify Macau’s economy beyond gaming, also focusing on the financial market and tourism at a time of uncertainty and political turbulence in Hong Kong.
Policies include establishing a yuan-denominated stock exchange, the development of a yuan settlement center and allocating land for Macau, according to Reuters.
The measures also aim to celebrate the twentieth anniversary of the return of the former Portuguese colony to China.
The operations of this new institution will focus on bond trading first to encourage local and mainland companies to issue debt in the city.
The exchange will also focus on startups and companies from Portuguese-speaking countries to avoid direct competition with Hong Kong and Shenzhen, Reuters reported, citing Macao executives and Chinese officials.
Macau will also join the Asian Infrastructure Investment Bank based in Beijing, and the city will be used as a venue to host international meetings.
Casino stocks rose to the highest levels after this report, reversing the decline that had been observed in recent weeks.
Wynn Macau Ltd. led with a 4.7% gain on Thursday in Hong Kong. Other stocks in the sector gained at least 2.5%.
Image source: pixabay
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