Bond Market Regulatory Guidance Should Have Specific Capital Origination Objectives – Lawyer


Macao authorities should clearly define a target financial market as the direction of new legal regulations aimed at developing the SAR’s young bond market, a lawyer specializing in capital markets and finance said today (Wednesday).

Currently, the legal and financial framework for issuing and underwriting bonds in Macau is mainly provided by the Macau Financial System Law, approved in 1993 and three directives issued by the Macau Monetary Authority (AMCM) in recent years.

Speaking at a seminar hosted by BritCham Macau, Calvin Chui, Partner at Rato, Ling, Lei & Cortés – Lawyers and Notaries – Lektou, pointed out that although local law has remained virtually unchanged since then, it has proven to be sufficiently flexible so far to allow for multiple bond listings.

The start of the operation of the Macau bond market dates back to 2018 with the establishment of Chongwa (Macau) Financial Assets Transaction, SA (MOX), which manages the bond issuance and trading platform in SAR.

Until September 2021, some 65 listing or bond issuance processes have been recorded on MOX, totaling almost MOP 196 billion (billion US dollars)

Still, Chui noted that the local financial market should better identify the capital it intends to attract.

“Do we intend to attract the same capital that the United States or Hong Kong have attracted? Or do we want something different, similar to Portugal, Europe or the Portuguese-speaking world? added the lawyer.

The Macao SAR Policy Speech for 2022 has prioritized attracting entities from mainland China and Portuguese-speaking countries to the Macao securities market, as well as their participation in financing transactions in renminbi.

The policy document also reveals that several proposals aimed at reformulating the legal framework of the local financial system will be put forward, such as the cancellation of the examination and approval system for the issuance of bonds, the introduction of investment banking, a ravemp tax code and improving changes that would allow for digital currencies.

After having defined the privileged origin of the capital, the SAR should then consider how it intends to attract this capital.

“The one who lends money has a stronger position over the entity that asks for the money. How do we bring them to Macau? Why not update the 1993 finance law in sync with the EU [regulations]he added noting that although Portugal also implemented a financial law around the same time, it has since then updated it several times to comply with EU regulations.

“We must not exclude ourselves from learning the international standard”


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