Details on preferential policies for Macau

As we noted earlier this month, the central government has rewarded protest-free Macau with a package of financial incentives and policies during the visit of Xí Jìnpíng 习近平 to the city to celebrate the 20th anniversary of its return to China. Greater Bay Insight says that the Special Administrative Territory got an even better deal than was expected. There are a number of proposals:

The most eye-catching of these came from the National Development and Reform Commission (NDRC), which focused on plans to support Hengqin [in Chinese] in establishing a so-called “Guangdong-Macau Deep Cooperation Zone”…

The second “red packet” came from the China Banking and Insurance Regulatory Commission (CBIRC), which said it would [in Chinese]: Encourage and support banks in Macau to set up institutions in the mainland to conduct business…

The third “red packet” came from the State Administration of Foreign Exchange (SAFE), aimed at further facilitating cross-border investment flows [in Chinese] for Hengqin-based, Macau-invested enterprises. These measures are a bit harder to understand, but could have major significance for the development of Macau’s financial-services industry…

The fourth “red packet” was the one most eagerly anticipated… Guangdong [will] work with Macau to accelerate the feasibility study of establishing a Macau Stock Exchange, which would be denominated in yuan.

See also on the China Law Blog: Macau vs. Hong Kong: And the winner is Singapore.