Tag Archives: financial markets

Macau pushes for Nasdaq-style offshore RMB market

The central government is giving serious consideration to a formal proposal submitted by Macau to establish a new kind of stock exchange in the Special Administrative Region. Traded in the offshore Renminbi, stocks listed on this exchange would be heavily weighted toward technology companies, much like the Nasdaq board in New York, and the recently established STAR Market in Shanghai.

It looks like this new market is part of a broader move within the region, if not the rest of country, to embrace diverse means of raising equity for Chinese companies. At the same time, Guangdong is looking into establishing a market like Shanghai’s STAR Market, in Guangzhou. And it has also applied formally to establish a Commodity Futures Exchange, like the Chicago equivalent, in Guangzhou’s Nansha district.

Could this be the start of a major push to get more Guangdong-based companies into the hands of equity investors? It certainly seems so, and there is huge upside room to move on this: just 1.8% of Guangdong’s 45,000 National-Level technology firms are publicly listed. Moreover, the person who revealed the details is just the kind of official to make this clear – and public.

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Financial opening accelerated

Foreign shareholding limitations are being scrapped in securities, asset management and futures firms by next year, a year ahead of schedule, according to the Financial Stability and Development Commission.

Only those who haven’t been paying enough attention, or who don’t subscribe to insightful newsletters, should be surprised by the announcement of 11 reform measures pledging to allow foreign capital access to more sectors including bond markets, insurance, asset management and pension funds. 

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