The Development Fund for Guangdong-Macau Development Cooperation Fund (“Guangdong-Macau Fund”) was officially established on Thursday, with the signing of the agreement in Guangzhou in the presence of Leong Vai Tac, Secretary for Economy and Finance of Macau and Chen Liangxian, deputy governor of Guangdong province, according to official information.
Leong Vai Tac noted that the creation of the “Guangdong-Macau Fund” was the first result in the area of financial innovation cooperation between the two jurisdictions, following the “Guangdong-Macau Framework Cooperation Agreement,” and is due to come into operation soon.
“The numerous projects available from Guangdong and its rich experience in project management can certainly promote the diversification of the assets of the Macau Financial Reserve and the preservation and appreciation of these funds,” said the secretary of the Economy and Finance.
Under the terms of the agreement, the Fund will operate for 12 years. Macau, as a financial investor, will apply a sum of 20 billion yuan from the Financial Reserve provided in stages and gradually.
Under the terms of the clause, in addition to the previously established profitability of 3.5%, the Macau share will receive an additional percentage if income is higher than a certain limit, which will improve the profitability of the territory’s Financial Reserve. (macauhub)