Gov’t to invest 20 bln yln in Guangdong

The office of the Secretary for Finance and Economy has announced that Macau is going to use its excess reserves to invest in the Guangdong-Macau Co-operative Development Fund, the memorandum for which was signed this week at the joint meeting of the governments of the two regions.
In terms of the way to invest, the two sides have agreed that Macau will be treated as a ‘Qualified Foreign Limited Partner (QFLP)’ to buy the shares of the Fund, while the Guangdong side will be represented by Guangdong Hengjian Investment Holdings Co., Ltd. and Guangdong Namyue Group Cp., Ltd. as a normal partner to subscript the shares of the Fund.
According to the statement of the Secretary’s office, Guangdong Hengjian Investment Holdings Co., Ltd. has been established with the authority of the Guangdong Provincial Government and funded solely by the Guangdong State-owned Assets Supervision and Administration Commission. By the end of 2015, it had total assets of 241.2 billion yuan (US$36.67 billion / MOP293 billion) and net assets of 163.6 billion yuan.
The Fund is said to be primarily invested in Guangdong Province ‘s key infrastructure projects and the development of Free Trade Zones (FTZ) in the province. The provisional investment scale is of 20 billion yuan, with an investment period of 10 years, with the funds placed in stages.
‘Both the Guangdong and Macau sides have reached consensus on the security mechanism and exit mechanism of the Fund. Guangdong Hengjian Investment Holdings Company will be liable and guarantee Macau’s fiscal reserves capital and interest [will be] safe and effective,’ reads the statement.
In addition, Macau will receive annual fixed investment income based upon the actual capital contribution paid.