The People’s Bank of China (PBOC), the nation’s central bank, in collaboration with the Guangdong provincial government as well as several other entities under the central government, yesterday announced their joint “opinions on supporting” the financial development of the Guangdong-Macau In-depth Cooperation Zone in Hengqin, which propose that the zone’s authorities should gradually allow the use of the pataca for small-value payments there.
The zone is also colloquially known in Chinese as in-depth cooperation zone.
The opinions are jointly proposed by the People’s Bank of China, the China Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC), the State Administration of Foreign Exchange (SAFE), and the Guangdong Provincial People’s Government.
The set of opinions that was published yesterday is also colloquially known in Chinese as “Hengqin Finance 30 Articles” as it lays out 30 points that aim to support the in-depth cooperation zone’s financial development.
The introductory note of the set of opinions says that after obtaining the approval of the State Council, the People’s Bank of China and the several entities have jointly proposed the opinions with the aim of enabling the effective implementation of the strategies and goals outlined by the Outline Development Plan for the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) and by the Master Plan of the Development of the Guangdong-Macau In-depth Cooperation Zone in Hengqin.
According to the introductory note, the set of opinions also aims to promote the reform and innovation of the in-depth cooperation zone’s financial sector, make it more convenient for Macau residents to live and work in the zone, and support Macau’s appropriate economic diversification.
The set of opinions says that the integration of financial services between the in-depth cooperation zone and Macau should be basically achieved by 2025, when the zone should have a “financial environment” that makes it convenient for Macau residents to live and work there.
6 aspects
The 30 points laid out by the set of opinions cover six aspects, namely 1) creating a financial environment that makes it convenient for Macau residents to live and work in the zone, 2) promoting the connection between the zone’s financial market and Macau, 3) developing a modern financial sector in the zone that supports Macau’s appropriate economic diversification, 4) facilitating cross-border trade, investment, and financing, 5) strengthening both sides’ cooperation on financial supervision, and 6) setting up protection measures.
According to the set of opinions, the in-depth cooperation zone’s authorities should roll out measures to make it convenient for Macau residents to use their mobile payment applications for purchases in yuan.
The set of opinions proposes that the zone’s authorities should study the possibility of allowing the use of patacas for payments there. In addition, the set of opinions also proposes that, provided that the respective risks are manageable, the zone’s authorities should gradually allow the use of the pataca for small-value payments there.
Other measures proposed by the set of opinions include making it convenient for Macau residents to obtain loans from financial institutions in the zone, and encouraging financial institutions in the zone to employ Macau residents.
The patacas is Macau’s sole legal tender. The Hong Kong dollar is Macau’s so-called “customary tender,” in the real-estate sector in particular.
This aerial photo taken earlier this year shows an area of Zhuhai’s Hengqin. – Photo courtesy of GD Today.
