Commentary by Ip Sio Kai*
Macao is not only a good example of the success of “One Country, Two Systems” but also a key city in the Guangdong-Hong Kong-Macao Greater Bay Area, an important hub of the Belt and Road Initiative (BRI) and a gateway to cooperation with Portuguese-speaking countries. The Macao Special Administrative Region’s (SAR) government upholds the “One Country, Two Systems” policy, building “one center, one platform and one base” to help the region fully integrate into the Greater Bay Area and the national development policy.
Drawing on President Xi Jinping’s speech during his inspection tour to Macao, in which he outlined “four hopes” and “three expectations”, and the Macao SAR government’s vision, the SAR can strengthen its role in financial connectivity and innovation in the Greater Bay Area. By leveraging its advantage of being “backed by the motherland and connected to the world”, Macao can play a leading role in promoting high-level financial opening-up, helping the country realize its broader development goals.
First, cross-border financial cooperation between Macao and Hengqin, a 106-squarekilo-meter island near the SAR poised to become a free trade zone, is entering a key breakthrough phase. So Macao should leverage its unique position as a facilitator of both domestic and international cooperation, and connect national policies on institutional opening-up with the standards and rules of the Greater Bay Area.
With careful planning, Macao can continue to develop the “Macao plus Hengqin” model to enrich “One Country, Two Systems” and strengthen ties between international markets and the Chinese mainland. And by adopting a “dual-line management” approach, Macao can streamline cross-border financial management, enhance market access, and create efficient mechanisms for cross-border investments and financing in high-tech industries and healthcare, paving the way for high-quality development in the second phase of the development of the cooperative zone.
Second, as a major international financial hub, the Hong Kong SAR has long been a key player in cross-border financing, offshore renminbi business, and economic exchanges. The development of Macao’s bond market can help boost Hong Kong’s offshore renminbi business and strengthen its capital market. As such, Hong Kong and Macao should deepen collaboration to integrate their financial resources by focusing on sectors such as offshore renminbi business, green finance, financial technology, and talent exchanges.
By connecting Macao Central Securities Depository and Clearing Limited with Hong Kong’s Central Moneymarkets Unit, the two cities can jointly expand financial services and capital flows, advancing the country’s opening-up while meeting the needs of various international markets.
And third, Macao’s unique position as a special administrative region enables it to serve as a crucial bridge which improves the Greater Bay Area’s financial connectivity with the rest of the world. Macao should continue to leverage its existing mechanisms such as the Forum for Economic and Trade Cooperation between China and Portuguese-speaking Countries and the China-Portuguese-speaking Countries Cooperation and Development Fund to work with the central government to strengthen ties with Portuguese-speaking countries, the Regional Comprehensive Economic Partnership member states, and key Belt and Road countries.
Through effective trade and investment agreements, Macao can attract more investment due to its low-tax system and access to the mainland’s vast market. By building a China-Portuguese cross-border digital trade settlement platform, exploring investment mechanisms between Portuguese-speaking countries’ sovereign funds and taking other initiatives, Macao can strengthen its role in international economic collaboration.
Besides, the Macao SAR government can enhance the role of the China-Portuguese-speaking Countries Cooperation and Development Fund in helping boost the development of Portuguese-speaking countries. By increasing its investment, Macao can become a leading investor in less-developed Portuguese-speaking countries. And by a new model of integration of industry and finance featuring mainland risk assessment plus Macao financial output plus market expansion in Portuguese-speaking countries, Macao can expand its market in Portuguese-speaking countries, improve its international financial profile, and better narrate the story of the Chinese nation’s rise.
*The author is a member of the 14th National Committee of the CPPCC, a member of the Executive Council of the Macao SAR, and a member of the Legislative Assembly of Macao. The views don’t necessarily represent those of China Daily.
This aerial drone photo taken on July 5, 2024 shows both parts of Macao and Hengqin. – Xinhua
