London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Plans for ‘offshore renminbi Nasdaq’ in Macau submitted to Beijing

Plans for ‘offshore renminbi Nasdaq’ in Macau submitted to Beijing

Official involved in submitting proposal to central government says he hopes plan might be approved as a ‘birthday gift’ on 20th anniversary of city’s return to Chinese administration.

Announcement of plan’s submission made at forum in Guangdong province on Saturday.

A proposal to set up an offshore yuan-denominated “Nasdaq” in Macau has been submitted to Beijing for consideration, according to a senior official from neighbouring Guangdong province.

He Xiaojun, director of Guangdong’s Local Financial Supervision and Administration Bureau, said he hoped China’s central government might give its blessing to the plan by mid-December, which marks the 20th anniversary of the city’s return to Chinese administration, the Sina Finance news portal reported on Sunday.

Guangdong, a hi-tech hub, is seeking to tap more capital for the sector.

The Monetary Authority of Macau said that a feasibility study was continuing into the establishment of a securities exchange. It reiterated it would “differentiate [itself] from incumbent financial centres nearby” and “serve the country’s needs”.

Beijing tasked Macau with carrying out a feasibility study on establishing a securities market – denominated and settled in yuan – in February when it revealed its outline development plan for the Greater Bay Area – a scheme to create an economic and innovation hub incorporating the cities of Hong Kong, Macau, Guangzhou and eight others in Guangdong.

A yuan-based stock market could help Macau diversify away from gaming, its main revenue source.

The city has begun to develop its financial services sector, but its scale is dwarfed by that of neighbouring Hong Kong, which is the region’s primary centre for offshore deals and trades denominated in yuan.

“We helped the Macau government to make a plan for [setting up] the stock exchange, with the aspiration to make it an offshore renminbi Nasdaq,” He, the Guangdong official, was quoted as saying at a forum on Saturday, using the formal name for the Chinese currency.

“[The plan] has been submitted for the central government’s consideration. We hope a new exchange is on [Beijing’s] gift list for the 20th anniversary.”

He did not say what Beijing’s response to the proposal had been.

He said the province has 45,000 hi-tech firms but only 600 Guangdong companies – not all of which are hi-tech – are listed, underscoring that the existing exchanges in Shanghai and Shenzhen could not meet the sector’s needs.

In June, the Monetary Authority of Macau said it had commissioned a consultancy to carry out the study.

However, its chairman, Chan Sau San, said at the time that the authority would consider only the “long-term development” of a stock exchange in the city as there were already several mature financial centres in the region, such as Hong Kong and Shenzhen.

The idea for an exchange would be considered as part of the wider development of the Greater Bay Area, he said.
Tom Chan Pak-lam, chairman of Hong Kong’s Institute of Securities Dealers, said Macau was unlikely to pose an immediate challenge to Hong Kong’s leading position in offshore yuan financial services.

“I can’t see Macau’s advantage in being a securities trading centre given Hong Kong has already established itself as a proven offshore securities centres for Chinese firms,” Chan said. “Macau will need to start from scratch on a listing approval and regulatory system.

“As to the idea of being an offshore yuan-based securities exchange, even Singapore, not to mention Hong Kong, has a much bigger pool of offshore yuan to facilitate such trading.”

Macau’s legal system is mostly based on Portuguese and continental European law – but common law, the basis for Hong Kong’s legal system, is far more widely accepted for international trading.

“In case of disputes, how many companies or international fund managers are comfortable in resolving them using Macau’s legal system?” Chan asked.

Gordon Tsui Luen-on, managing director at Hantec Pacific, said Macau’s aspiration to become a financial centre depends on how it can truly differentiate itself from Hong Kong and Shenzhen and offer something different.

"After all, it takes decades to build up the necessary talent pool and regulatory policy regime for such a centre to come about,” Tsui said.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×