What is the significance of the Ministry of Finance issuing 5 billion yuan of treasury bond in Macao? Expert interpretation
Yesterday, the Ministry of Finance successfully issued 5 billion yuan of treasury bond to professional investors in Macao, with a record issuance scale and enthusiastic market subscription.
The latest data shows that the Ministry of Finance issued 5 billion yuan of treasury bond to professional investors in Macao, with a total subscription of 10.15 billion yuan, and a subscription multiple of 2.03 times. Among them, the 2-year term is 4 billion yuan, with an issuance interest rate of 2.40%; A 5-year term of 1 billion yuan, with an issuance interest rate of 2.68%.
Macau SAR Legislative Council Member and Acting Chairman of the Macau Banking Association, Ye Zhaojia: The subscription for this issuance is very enthusiastic, with investors including banks, monetary authorities, investment banks, and investment funds. In addition, its investors are located in regions such as Macau, Hong Kong, and Southeast Asia. In particular, it is also subscribed through the bond "southbound" channel, so this subscription has received high attention and recognition from domestic and foreign bond markets.
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According to sources, through this issuance, some "southbound" investors have opened up investment channels in the Macau bond market for the first time. At the same time, there are also new investors from Portuguese speaking countries who are subscribing, further expanding the scope of investors and diversifying the investor structure. In addition, the initial issuance of five-year RMB treasury bond provides investors with long-term, safe and stable investment options.
Advisor to the Macau Monetary Authority, Liu Jiahua: This fully reflects the continuous support of the government for the construction of the Macau bond market, which is of great significance for enhancing the attractiveness of the Macau bond market, supporting the development of the offshore RMB market in Macau, and strengthening cooperation between the mainland and Macau financial markets.
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In 2019, the Ministry of Finance issued RMB 2 billion treasury bond in Macao for the first time. In 2022, the Ministry of Finance will issue another 3 billion yuan of treasury bond in Macao. This will be the first time that Macao's "central securities depository system" has been launched to provide registration, settlement and custody services for sovereign bonds, and Macao's bond market infrastructure standards and capabilities have reached a new level.
Liu Jiahua, consultant of Macao Monetary Authority: In 2023, the Ministry of Finance issued 5 billion yuan of treasury bond in Macao, which is the second consecutive year of treasury bond issuance after 2022. This reflects the gradual normalization of the issuance of treasury bond in Macao, with the cumulative scale reaching 10 billion yuan. The scale of a single issue has steadily increased, and the term structure has become increasingly rich.
Insiders said that the Ministry of Finance's continuous issuance of RMB treasury bond in Macao will further enhance the international recognition and influence of Macao's bond market, and help Macao's modern financial industry and sustainable development of Macao's bond market.
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Liu Jianjun, Chief Risk Officer of Bank of Communications: As a useful supplement to treasury bond bonds in the Hong Kong market, treasury bond in the Macao market provide an accurate pricing basis for attracting more high-quality issuers to choose to issue bonds in Macao for financing. It will contribute to the sustained expansion of the offshore RMB market in Macau and serve as an important carrier for the Macau financial industry to implement the strategy of deep cooperation and development in the Guangdong Hong Kong Macao Greater Bay Area.