Companies in the Guangdong-Macao In-depth Cooperation Zone in Hengqin will get a subsidy of a maximum of RMB 5 million yuan when successfully issuing corporate bonds in Macao, according to the latest announcement by Hengqin authorities yesterday (December 30th). The measure will take effect from March 1st, 2022, with a validity period of one year.
According to the support measures, if the companies issue green bonds, they will get an additional RMB 500,000 yuan in external review fee funding support. Law firms, accounting firms, credit rating agencies, and third-party review agencies for green bonds in the cooperation zone that provide services for domestic enterprises to successfully issue corporate bonds in Macao will get a subsidy of RMB 100,000 yuan each time.
In September, China's central authorities issued a general plan for building a Guangdong-Macao in-depth cooperation zone in Hengqin. The plan stressed building an integrated new system with Macao featuring a high-level opening-up. Innovative measures will be introduced in terms of cross-border financial management.
It is reported that the promulgation of support measures will attract more companies in the region to preferentially choose to issue corporate bonds in Macao, which will increase the activity of the Macao bond market. At the same time, the support measures give rewards to intermediaries, which is conducive to the cultivation of the service ecology of the bond markets in Macao and the cooperation zone and lays a foundation for the cooperation zone further to support the development of the Macao bond market.