Macau is uniquely positioned as a core metropolis for the Greater Bay Area and the Belt and Road Initiative, presenting BOCM with many alternatives but additionally a substantial amount of duty
Author: Li Guang, General Manager, Bank of China Macau Branch
July 13, 2020
Bank of China Macau Branch (BOCM) has developed in line with the Macau particular administrative area (SAR) since the founding of the People’s Republic of China, and was a key supply of stability round the 1999 resumption of Chinese rule. As the financial institution’s common supervisor, I’m wanting forward to a brand new interval of improvement alternatives as BOCM celebrates 70 years in operation.
Founded in 1950, quickly after the institution of the People’s Republic of China, BOCM (previously often called Nam Tung Bank) has at all times been a vital pillar of the Macau SAR’s economic system and society. It accounts for practically half of all banking enterprise in the area and is the most worthwhile abroad department of the Bank of China Group, China’s main worldwide financial institution.
In 1987, Nam Tung Bank obtained approval to alter its identify to BOCM. The change was the fruits of governmental efforts to broaden the vary of services supplied by monetary establishments in the area, and helped to spice up internationalisation in the home monetary sector. The financial institution’s new identify additionally recognised the essential function that Bank of China was taking part in in stabilising the monetary market as talks about the future relationship between Macau and mainland China progressed. Then, as at this time, BOCM is dedicated to making sure Macau’s future financial prosperity.
The ‘one country, two programs’ coverage permits BOCM to capitalise on the alternative to carry out on a big stage
I’m proud to spotlight the financial institution’s clear and apparent benefit inside the ‘one country, two programs’ coverage. The coverage permits BOCM to capitalise on the alternative to carry out on a big stage. China’s 40-year ‘reform and opening up’ period led to grand progress initiatives operating throughout Macau, resembling the Belt and Road Initiative and the improvement of the Guangdong-Hong Kong-Macau Greater Bay Area, and elevated overseas direct funding into the mainland’s beforehand closed economic system (see Fig 1). As China continues to pursue bold improvement initiatives and collaboration with different nations, BOCM and the complete SAR are set to profit.
Since its institution in Macau in 1950, BOCM has unswervingly adopted its mission assertion: rooted in Macau, serving Macau. The financial institution has proven dedication to fostering financial improvement, selling business and commerce, supporting deprived communities and developing good infrastructure, all to ensure the continued prosperity and stability of Macau. The result’s that now we have received the belief of the area’s residents, making us the area’s most popular financial institution.
BOCM just isn’t solely a Macanese-pataca-issuing financial institution, however it’s also the authorities’s public banking consultant and a renminbi-clearing financial institution. Besides these formal roles, over the years the financial institution has organised charity occasions, supported schooling initiatives and been instrumental in the improvement of latest expertise in the banking business. Our achievements are the results of joint efforts spanning a number of generations. The previous decade, specifically, has seen a marked improve in improvement on this space.
Under the Belt and Road Initiative, BOCM has seized the alternative to fulfill the financing wants of Chinese corporations which might be investing abroad. Chinese organisations increasing into Portuguese-speaking nations and firms from Portuguese-speaking nations getting into the Chinese market will discover BOCM’s providers notably useful.
Macau is uniquely positioned as a core metropolis for the Greater Bay Area and the Belt and Road Initiative, presenting BOCM with many alternatives but additionally a substantial amount of duty. We are eager to make sure that companies, each home and worldwide, have entry to the capital they require with a view to take part in these bold improvement programmes.
BOCM’s progress in selling Macau’s monetary improvement, particularly in the Guangdong-Hong Kong-Macau Greater Bay Area urbanisation initiative, could be very gratifying. BOCM has issued pataca bonds value $1.8bn, offshore renminbi bonds value CNY 4bn ($562m) (a part of a rising variety of ‘lotus’ bonds) and offshore One Belt One Road renminbi bonds value CNY 4.5bn ($633m), amongst different themed bonds. As a global coordinator, now we have efficiently applied the Ministry of Finance’s plan to situation authorities bonds value CNY 2bn ($280m) in Macau.
In addition, in 2019, BOCM efficiently issued the first inexperienced bond in Macau. This was additionally the first secured in a single day financing charge bond for industrial establishments in rising markets and the Asia-Pacific area; launching the product enormously enhanced the popularity of Macau’s monetary establishments in the worldwide bond market.
Clear the method
As a renminbi-clearing financial institution, BOCM has led the method in opening the first renminbi checking account in Macau for Portuguese Commercial Bank, thereby accelerating the improvement of Macau as a Sino-Lusophone renminbi-clearing area. In May 2019, the Conference of Central Bankers, Financial Supervisors and Financiers from China and Portuguese-speaking Countries coordinated the efforts of Chinese banks to interact with 5 financial institution associations from Lusophone nations. This united a variety of members in monetary providers, resulting in improved commerce cooperation between China and Portuguese-speaking nations.
At the identical time, BOCM has expanded the geographical attain of the financial institution and diversified the wealth administration channels accessible to residents. For occasion, the Shanghai Gold Exchange has authorised BOCM to deal with its offshore accounts, making enterprise easier for the financial institution’s account holders. The deal will promote the buying and selling of treasured metals in Macau.
BOCM can be a pioneer of digital banking in Macau, having embraced areas resembling fintech. BOCM is taking the lead on this space with the creation of BoC Pay, a web based cost channel that helps Alipay, WeChat and UnionPay. By the finish of 2019, the platform had welcomed 7,860 retailers. Other digital initiatives that now we have promoted embody on-line banking for private and company prospects, which gives self-service performance safeguarded by the highest safety requirements.
The Bank of China Group has established branches in Portugal, Brazil and Angola, making a service community in Portuguese-speaking nations to assist prospects pursue alternatives in Sino-Lusophone improvement. In the development of the renminbi-clearing centre for Lusophone nations, BOCM has joined the Cross-Border Interbank Payment System, which covers these nations. At current, the financial institution has established an company relationship with 17 banks in Lusophone nations. In 2018, enterprise on this community reached CNY 2.5bn ($350m).
At the identical time, BOCM is engaged on making a Sino-Lusophone funding and financing service platform. This would offer a wealth of knowledge on funding initiatives in Lusophone nations, selling the integration of Sino-Lusophone initiatives and undertaking matching. Thus far, BOCM has efficiently assisted the Portuguese central financial institution in issuing panda bonds in China, changing into a mannequin for overseas central banks to situation panda bonds on the mainland. BOCM additionally supported an enterprise in Macau to buy a Portuguese farm for €35m ($38m) to advertise the improvement of agricultural and industrial cooperation between China and Portugal.
As we glance to the future, BOCM will proceed to assist the improvement of Macau’s economic system and society, serving to to enhance individuals’s lives in accordance with the Macau SAR Government’s coverage agenda. The financial institution can even absolutely assist the improvement of the Guangdong-Hong Kong-Macau Greater Bay Area, thereby selling the integration of Macau into the country’s total progress.
BOCM will preserve its position as a well-rounded, mainstream financial institution in the area and attempt to turn into an essential monetary establishment serving the Guangdong-Hong Kong-Macau Greater Bay Area, in addition to serving the Belt and Road Initiative, particularly amongst Portuguese-speaking nations.