Macau invests part of its financial reserve in Guangdong

26 June 2015

Cooperation between Guangdong province and Macau achieved the objectives set out in the “Guangdong/Macau Cooperation Framework Agreement” and this cooperation will now reach a higher level, the Chief Executive of Macau said Thursday.

At the end of the 2015 Guangdong-Macau Joint Cooperation Conference held in the city of Jiangmen, Chief Executive Chui Sai On also said an agreement had been signed for investment of the Macau financial reserve in large infrastructure projects in Guangdong Province.

Chui noted the government of the Macau Special Administrative Region (MSAR) was confident in the profitability and security of the financial reserve and added that, after the Secretary for Economy and Finance discusses the matter with the Guangdong authorities, details would be made public .

At the end of May, Macau’s financial reserve totalled 349.6 billion patacas (US$43.7 billion), of which 134.3 billion patacas, or 38.4 percent of the assets were part of the basic reserves and 215.3 billion patacas or 61.6 percent were extraordinary reserves.

Created in 2012, the Macau financial reserve consists of basic reserves and extraordinary reserves, the former being the equivalent of 150 percent of total central services spending as included in the latest budget approved by the Legislative Assembly and the latter the balance that remains after meeting basic reserves.

The governor of Guangdong Province, Zhu Xiaodan, summarised past cooperation between the two territories and said that in the last year, Guangdong and Macau had implemented the “Guangdong-Macau Cooperation Framework Agreement” in its entirety, which had given new life and effectiveness to cooperation in the areas of the economy, society, and the lives of the population, among others.

He added that cooperation between the two sides should be promoted further to boost the “One Belt, One Road” projects and Guangdong’s free trade areas as well as expanding the area of cooperation. (macauhub/MO)