Hengqin’s first inclusive cross-border linkage loan, amounting to 10 million yuan ($1.54 million), has been granted to a small-sized teenage robot education enterprise. This is the first company in Hengqin New Area to receive a loan from Macau since Guangdong began an external debt facilitation pilot scheme in March 2020, according to news website City of Zhuhai.
The Macau-funded high-tech enterprise boasts a complete service system from R&D of robotic products and curriculum to the artificial intelligence education of primary and secondary students. It has hosted large robot competitions for six consecutive years. The full-scope cross-border financing quota could hardly meet the company’s demands, however, due to its small net asset scale.
An innovative financing tool
The Guangdong Branch of the Bank of China thus proposed the innovative product “Guangdong-Macao Shared Loan 2.0” to help solve the capital gap in R&D and market expansion with a low-cost external debt from the Macau Branch.
The practice allows medium, small, and micro-sized high-tech enterprises in the Guangdong-Hong Kong-Macau Greater Bay Area to draw upon financing from both domestic and foreign markets at a lower cost. It is of great significance to the fast growth of a high-tech start-up, said an enterprise executive.
The Guangdong Branch of the State Administration of Foreign Exchange was approved for the external debt facilitation pilot in March 2020. Eligible Greater Bay Area enterprises are now entitled to a maximum external debt of $5 million.
Next, the Bank of China will further adjust its cross-border cooperation to help integrate Macau-funded enterprises into the development of the Greater Bay Area and settlement of high-quality Chinese mainland scientific innovative enterprises in Macau.