In an effort to move away from gambling and to diversify its sources of income, Macau is reportedly now considering launching its own stock exchange. The planned Yuan-based stock exchange should further align the island's efforts with China's Greater Bay Area initiative to develop the country's southern region.
According to reports, the island's Monetary Authority is apparently now conducting a feasibility study for a possible equities market to be based in the city. The agency has found that a stock market would be a great fit for the city and for the country in general. It even mentioned that a market in Macau should perform very well, if not better, than the established markets in Shenzhen and Hong Kong.
Macau has long planned to slowly move away from gambling as its main source of income. The former Portuguese colony is currently the world's biggest gambling hub, but officials know that it cannot solely rely on gaming profits for the long term. As of the moment, Macau's government earns more than 80 percent of its revenues from the gaming industry. Last year, the industry generated gross gaming revenue of around $38 billion.
For the past few months, China has been pushing for Macau to bolster its tourism sector through the addition of non-gaming attractions. Gaming regulators within the special administrative region have even gone as far as to require casinos to build non-gaming attractions as part of its license renewal requirement.
Macau's Monetary Authority believes that there is great potential for the city to become a financial hub in the region. Macau should be able to leverage its strong position as a hub between Portuguese-speaking countries and Mainland China.
The agency is taking this fact into consideration in its deliberation and its feasibility study to establish an equities market within the island.
China had expressed its support for Macau to establish itself as a financial hub. The country's cabinet recently unveiled its guidelines for the Greater Bay Area, which includes plans to support Macau in offering financial products and services. It also specifically stated the country's support for Macau to start a securities market.
Macau has a number of financial services available to investors, but it currently pales in comparison to the services being offered in places such as Hong Kong. Firms offerings services such as wealth management, financial clearing, and financial leasing are currently operating on the island, but officials hope to further expand these services to generate added income for the city.
