We tend to forget that: Hong Kong is not the only territory to benefit from Special Administrative Region status. Less than an hour away by boat or road, the former colony of Macauwhich was Portuguese territory for five centuries, enjoys a semi-autonomous status as did the former British colony of Hong Kong. In fact, in December the twentieth anniversary of its reunification with the Chinese motherland - as it is known in official circles - with the highly symbolic visit of Xi Jinpingthe powerful Chinese President.
The presence of China's strongman is both a reward and a thinly veiled message to Hong Kong. For, unlike the former British colonyThe reintegration of the former Portuguese territory into China went smoothly, making Macao the harmonious "model" of integration which the government in Beijing is so keen to promote. Politically, Macau is totally integrated into China, with the government of the SAR (Special Administrative Region) even anticipating Beijing's wishes. For example, it recently refused entry to several representatives of the American Chamber of Commerce in Hong Kong because of the US government's support for the Hong Kong demonstrators.
The richest city in the world
Above all, Macau's prosperity is totally dependent on China. Whereas during the colonial era, Macau lagged behind Hong Kong, with an activity essentially centred on textiles and its few casinos, the return to China has resulted in the development of a new economy.opening of the gaming market has new players, notably American. The liberalisation of the game was reflected in the arrival of the big names present at Las VegasThese include Sands, MGM, Galaxy and Wynn Resorts. Today, the casinos generate over 80% of the region's wealth, compared with 41% in 1999...
As for Macau's GDP, it has soared. Whereas in 1999 it was around 15,500 dollars per capita (which in PPP terms corresponds to 31,800 US$) compared with 25,000 US dollars in Hong Kong (PPP 24,800 US$) during the same period, in 2018, according to World Bank statistics, it reached 87,200 dollars in Macau compared with 48,700 dollars in Hong Kong... Expressed in PPP, Macau crushes its neighbour even more with a GDP per capita of 124,000 dollars, more than double that of Hong Kong at 64,600 dollars. The International Monetary Fund (IMF) predicts thatin 2020, Macao will have the highest GDP in the world.
And the announcements made by Chinese President Xi Jinping are likely to confirm this trend. As a gift for twenty years of smooth reunification, Xi Jinping has announced his intention to transform Macao into a financial centre with the possibility of setting up a stock exchange.
According to Chinese sources quoted by Reuters, this future Macau stock exchange would initially focus on the bond trading and start-upsIt would also target companies in the Portuguese-speaking world, so as not to compete head-on with the Hong Kong and Shenzhen stock exchanges. This exchange would have its securities listed in yuanIt will also enable Chinese companies to benefit from a secure financial centre, sheltered from the upheavals of Hong Kong. Specialists from the Shanghai stock exchange have been dispatched to Macao to help organise the future stock exchange.
This development would profoundly transform Macau's economy from a pure gambling centre into a business-oriented destination. China's state-owned banks are already involved in the formation of this exchange. The Chinese President would gladly draw inspiration from theexample of SingaporeMacao's future financial role will transform the city into a major financial centre. international conference and business tourism centre. Business tourism remains under-represented, generating just 5% of total arrivals in 2018, and just 6% if business activity is included. MICE.
Policies include the creation of a yuan-denominated stock exchange and the strengthening of an institute for yuan-denominated transactions, an institution that has already been in operation for several years. An important aspect is the allocation of land in neighbouring mainland China for the development of Macau.
" The financial sector was an activity we reserved for Hong Kong" a Chinese official told Reuters on condition of anonymity. " We used to concentrate all the economic policies favourable to business in Hong Kong. But now we are diversifying" .
Macau's future is called Hengqin
To facilitate the arrival of new SMES and financial servicesLast autumn, the Chinese government gave the go-ahead for a land concession on Chinese territory under Macau's jurisdiction. In the sights of this new development in the former Portuguese territory is theHengqin IslandHengqin is adjacent to the Cotai district, where most of the major casinos are located. Part of Hengqin will be partially incorporated into the territory of the SAR under a lease running until 2049and renewable.
A new border crossing will open in the first quarter of this year, Macao's Secretary of State for Administration and Justice, André Cheong Weng Chun, announced on Monday. Foreigners travelling to Hengqin should be visa-exemptThey are now subject to the same visa regime as the rest of China.
The port of Hengqin, with its new border crossing, will be able to handle handle up to 80 million passengers a yearThat's more than 200,000 a day.
Development of the island began a number of years ago, and recently culminated in the inauguration of a Hyatt Regency with 494 rooms. Opened in December, it is part of a a new district called NovotownHengqin is one of the world's largest theme parks, mainly dedicated to leisure activities. At the end of 2018, the province of Guangdong - where Hengqin is located - and Macao announced an investment of almost 300 million Science City", a centre focused on science and technology industries. digital and logistics. The centre is due to open in 2021.
The Chinese President's announcement that Macau is to be transformed into a financial centre could therefore have an influence on Hengqin, which could then accommodate even more hotels and offices, and would eventually be linked to the rest of Macau by the new light rail system. Macau's future is therefore being built with mainland China. Which could make it even more marginalise Hong Kong...
