Zhuhai’s biggest state-owned conglomerate, Huafa Group, has just given Macau a vote of confidence, becoming the first non-Macau company to issue a publicly traded bond on the city’s nascent exchange.
Huafa group announced the successful issue at the weekend, saying it is the first publicly offered bond registered and issued by the Macau Financial Assets Exchange (MOX).
On the day of the issue pricing, the bonds were reportedly heavily subscribed by institutional investors, with a total order volume of nearly US$730 million, half of which came from local financial institutions.
Macau currently has neither a well-developed bond market nor a well-established investment institution outside of the commercial banks. Most Macau companies either issue bonds in Hong Kong or raise capital through private arrangements.
As the first financial institution providing bond registration, custody, exchange and clearing services in Macau, MOX recently set up a financial exchange platform for public bond issuance. Its first transaction involved the issuance of RMB government bonds, totaling around 40 billion patacas (about US$5 billion).
Huafa was established in 1980, soon after the founding of the Zhuhai special economic zone. By the first half of this year, it had total assets of 315.5 billion yuan and net assets of 90 billion yuan.
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