Daily Archives: December 13, 2021

By Jos Alves and Marco Rizzolio

Macau Business | December 2021

The global Portuguese-speaking community:250 million people or 3.7% of the world population10.8 million km2 or 7.25% of the world by area2,100 billion USD or 4% of world wealth

When exploring statistics about Portuguese-speaking countries, one finds that, apart from Portugal, most of these countries are heavily dependent on exporting their natural resources. One way to foster the growth of these economies is to support their transformation from a resource-based economy to a value-added economy; these countries need to produce value-added goods and services and move up in global value chains. Education and innovative entrepreneurship is the way forward to aid this transition.

The first edition of the 928 Challenge start-up competition between university students from China and Portuguese-speaking countries ended on the last Saturday of October at the Complex of the Forum Macau, with sixteen teams pitching their proposals to a panel of judges composed of business executives. The teams were required to present new business ideas that addressed the sustainable development goals and the cooperation between China and the Portuguese-speaking countries. The event was co-organized by the Forum Macau, City University of Macau, Shenzhen University, and the United Nations University Institute of Macau.

We had the vision for the 928 Challenge earlier this year after experiencing months of online classes. We noted that students, more than anyone else, can quickly adapt and grow in online environments. Their ability to communicate through social media channels is remarkable. Our work during the pandemic gave us the insight to unite universities and students from China and Portuguese-speaking countries around entrepreneurship. We did not know what to call the event. Inspired by the simplicity of Chinese sigla, we decided to evoke the nine cities of the Greater Bay Area, the two special administrative regions, and the eight Portuguese-speaking countries therefore, the name 928 Challenge.

Knowing that many traveling restrictions would remain for a while, we identified an opportunity to organize the 928 Challenge in a blended format and bring the organizing costs down to a low level. We aimed to leverage digital technologies to link students, universities, and communities across all continents. Given the distances and time zones between China and the Portuguese-speaking countries, we knew we would face challenges. Still, we believed that the initiative would be appealing and attract students.

We prepared our pitch for the 928 Challenge and presented it to Forum Macau on the first week of April 2021. Our counterparts immediately understood the vision of the 928 Challenge and readily embraced it. Receiving this immediate and spontaneous support gave us the courage to execute our vision. We worked with determination for several months to mobilize support, sponsors, universities, and students. We contacted departments of the Macau SAR Government and private companies. The companies replied swiftly and came forward with sponsorships that were fundamental. Their quick action gave us additional confidence. We approached government departments gradually according to their roles in the construction of the Macau platform. As expected, they also provided crucial institutional support.

The most challenging, yet rewarding work appeared when we contacted universities and students from all the participating countries. We used all our personal and institutional contacts to get teams registered on the events website. The response came in very different ways. A few partner universities from the Greater Bay Area and other provinces in China enrolled their teams quickly, while the universities from Portuguese-speaking countries took longer. We were aware of, but not fully prepared to deal with geographical, cultural and, more significantly, technological barriers. We all speak the same Portuguese language, but there are differences which need to be better appreciated. We spent many hours contacting university leaders, professors, and students in all countries. We used multiple channels and sent out hundreds of emails, messages, and telephone calls. To reach out to people in different time zones, we called them whenever convenient from our early morning hours to very late hours at night. Moreover, we did this non-stop for several weeks. Gradually, we built a very extensive network across Portuguese-speaking countries and China.

Despite this effort, only about 25 teams had registered with eight weeks to go for the opening. Four weeks later, the number increased to 50 teams. With the deadline approaching, the registrations increased by the day. When registration closed, we received 153 teams representing 51 universities and almost 800 students from all nine countries. This overwhelming participation was beyond all our expectations. We were thrilled. Aware of the scale of the project, we immediately asked our students and colleagues to volunteer and offer time to support in all areas. A few weeks before the final event, we learned about the postponement of the Macau International Fair, and we could no longer host the final event there. Fortunately, the Macau Forum once again jumped in and unconditionally offered to host the event.

We designed and delivered an online start-up training and mentorship program, or boot camp, for two weeks in October. During the boot camp, teams from China had the opportunity to learn about the business dynamics and environment in the Portuguese-speaking countries: Angola, Brazil, Cape Verde, Guinea Bissau, Mozambique, Portugal, Sao Tome e Principe, and Timor Leste. On the other hand, teams from Portuguese-speaking countries learned about the Great Bay Area of China and its vibrant market of 60 million people. The boot camp was broadcasted on a live stream to all countries this was a considerable challenge primarily due to internet accessibility.

At the end of the boot camp, we received pitch decks and videos from 89 teams and engaged a team of 20 judges during five days to select 16 teams to enter into the finals. A couple of the finalist teams, from Guangzhou and Shenzhen, traveled to Macau and joined the final event with three Macau teams. All the other teams participated online and on video in the final event. The enthusiasm of the online teams was high. A Brazilian team eagerly waited to enter online and did it when it was already after midnight in Brazil. The team from Guinea Bissau was even more anxious and waited until 4:00 AM to watch their video and respond to questions from the judges. A dream and willpower drove these students.

The winning teams presented ideas that addressed severe and significant societal problemsthe team from Portugal, University of Porto, proposed vaccines for under-provided aquaculture farms in China. Students from the Lusophone University of Guinea-Bissau proposed solar energy for a region in their country which does not have electricity. A team from Guangzhou Polytechnic Normal University proposed a traditional Chinese medicine treatment to prevent increasing rates of coronary diseases in Portugal. A team from Brazil, the State University of Rio de Janeiro, proposed to reuse rice husks from China to produce fertilizers for the growing agriculture sector in Brazil.

The solutions offered by the finalist teams show unequivocally that the Macau platform is possible. It requires substantial effort to reach out to geographically distant communities with distinct cultures and needs. The platform needs active collaboration among people and institutions from all countries and, more importantly, it needs to provide incentives and resources to new initiatives like this one.

Several participant teams in the 928 Challenge proposed start-ups that address basic human and social needs such as food, agriculture, energy, health, and communication. These are development problems that can be solved with the knowledge and technologies available in Macau. These communities have development needs which most developed cities in China and Macau have already overcome.

The Macau business people have privileged access to the emerging and growing Portuguese-speaking markets and need to use that strategically. Otherwise, others will do it. In conclusion, the Macau platform is possible it is within our hands to make it happen. The 928 Challenge is just eye-opening. The platform is possible when we get out of our comfort zones and play to the strengths of Macau interculturality, languages, and adaptability.

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OPINION The Platform is possible - Macau Business

The recent closure of some VIP rooms and the emphasis on Macau-Hengqin cooperation can be analytically put together as a whole package of governing issues with implications for Macau: namely the effective transition from a much better and tighter management of some casinos within casino franchises to the formulation and implementation of suitable economic diversification. During this difficult transition, the Macau government and its society must manage a multiplicity of issues, ranging from a more comprehensive and much deeper policy planning to an extensive survey of different economic sectors so that sufficient statistical data will be available for a more scientific policy making for the Macau Special Administrative Region (MSAR).

First and foremost, the problems emanating from the gaming promoters, which have possessed VIP rooms under Macaus casino concessionaries, have already exposed the baffling problem of Macau witnessing casinos exist within casino franchises. Most significantly, a few of these casinos within casinos have outgrown themselves, allegedly extending their marketing and gaming businesses not only into the mainland but also to the overseas, where mainland gamblers were lured into the gaming activities, which however are seen as illegal in accordance with the mainlands criminal law. Some Macau-based gaming promoters appeared to lack the political sensitivity that gambling is constantly regarded as a crime in mainland China, where its ruling authorities have since January 2021 cracked down on cross-border gambling, including Internet gambling. Macaus casino capitalists, including those operating VIP rooms and casino concessionaries, must be highly sensitive to not only the mainlands criminal law but also the economic securitization of Macaus gambling sector. Specifically, gambling in the MSAR often entails the risk of endangering the economic national security of the central government, especially if gamblers are from the mainland and if they may engage in massive gambling with the implications of cross-border money laundering and siphoning off the mainlands financial coffers.

To plug the loophole of having many casinos within casinos, the Macau government must work with the private-sector casino concessionaries to review the complex triangular contractual relationships between the gaming promoters, casino concessionaries and the government. The contractual relations between the government and the casino concessionaries can perhaps be managed more easily and effectively by the Macau public administration itself. However, the contractual relationships between casino concessionaries and gaming promoters coping with the VIP rooms appear to be more complex, as the Court of Final Appeals decision on the Dore Entertainment case showed.

In the past, casino concessionaries saw VIP rooms as being attractive to big rollers, utilizing the gaming promoters as marketing agencies to boost their market and profits. However, the unintended consequences were that gaming promoters could overgrow in such a proportion that their empire could be regarded by the mainland law-enforcement authorities as running the risk of violating the mainland law and regulations. As such, it is urgent for the elites of the Macau casino sector to understand the content of the mainland law and regulations regularly, to critically reflect on whether its gaming promotion might grow out of its proportion, and to reinforce the political sensitivity that gambling remains a crime in the mainland.

Article 303 of Chinas Criminal Law says: Whoever, for the purpose of reaping profits, assembles a crowd to engage in gambling, opens a gambling house, or makes an occupation of gambling is to be sentenced to not more than three years of fixed-term imprisonment, criminal detention, or control, in addition to fine. Above all, an amendment made in December 2020 of Article might have been ignored by many casino capitalists, managers, and promoters in Macau. Specifically, the amendment is as follows: Using profits as the motive, those who gather people to gamble or rely on gambling as their profession can be imprisoned for 3 years or below, arrested, controlled or fined. Those who open gambling houses can be imprisoned for 5 years or less, arrested, controlled, or fined. For serious cases, those who are involved can be imprisoned for five years above or ten years below, in addition to the fine.

It was unclear whether the amendment to the mainland Chinese Criminal Law was made known to all the elites in the Macau casino sector. Ideally, Macaus casino concessionaries and their related gaming promoters should conduct intensive research on how the mainland government has been updating, amending, and implementing its criminal law relating to gambling.

Another very important notice issued by the mainlands Ministry of Public Security (MPS) on February 5, 2021, might be neglected by the Macau casino sector. The notice said that some syndicates outside the territory [of China] attracted gambling and absorbed money for a long period of time ((nia.gov.cn), February 6, 2021).

The MPS cooperated with various departments to combat cross-border gambling, coming up with a six-point notice. The notice firstly targets those suspected criminals opening casinos and those who are involved; secondly appeals to these people to surrender themselves voluntarily with the possibility of reducing their sentences; thirdly designates the methods of surrendering themselves through letters, phone calls, telegrams and emails; fourthly reduces the sentences of those who surrender themselves and who make contributions to the situation and policy by exposing others illegal acts and providing important clues for the crackdown of cases; fifthly empowers the judicial branch to penalizes severely those who do not surrender themselves within a specified period; and sixthly encourages individuals and organizations involved to report on those who are at large or who intimidate or retaliate against those becoming whistleblowers (Ibid). Once this notice was officially published, many mainland cities publicized it, implying that different cities perhaps had citizens and officials who might be involved in cross-border gambling activities.

On November 29, the Supreme Peoples Procuratorate made an important revelation that, from January to September 2021, the procuratorate agencies in the mainland prosecuted 13,300 people, including those who were involved in criminal cases in Hong Kong and Macau, and embracing 1,376 people who opened gambling houses. Moreover, the new style of opening casino gambling was deceptive and hidden ((yahoo.com), November 29, 2021). Clearly, the mainland government has seen cross-border gambling as a serious criminal offence.

Yet, the crisis of governing casinos within casinos can be turned into a golden opportunity for Macau to develop suitable economic diversification. According to the plan of cooperation between Macau and Hengqin published in early September 2021, the designation of four areas of economic diversification technological innovation and high-ended manufacturing sector; the development of Chinese medicine; the expansion of cultural tourism, convention, exhibition and trade sectors; the development of modern financial and monetary sector; and the development of big health will require very detailed planning and policy formulation. So far, it remains to be seen how the Macau government will come up with concrete plans and policy formulation on each of these areas.

The call for economic diversification in Macau began in July 2008, when the former Chinese Vice President Xi Jinping visited the MSAR; nevertheless, little was done until September 2021 when the central government published the Macau-Hengqin cooperation plan in a top-down manner. Progressively speaking, the Macau government should establish several committees to coopt the industrial, economic and societal elites in different occupation sectors to figure out (1) the manpower needed to boost the four areas of development; (2) the number of local and mainland talents who may be needed; and (3) the timetable for the MSAR to implement a suitable degree of economic diversification. Otherwise, if Macaus gambling sector is encountering the prospects of a shrinking market partly due to Covid-19 and partly due to the complexities in managing casinos within casinos, the current crisis cannot be seized as an opportunity to redevelop, re-energize and re-invigorate Macaus economy.

Statistically speaking, the recent document on Macaus talent development has lacked concrete statistical figures in many areas: (1) the number and proportion of mainland graduates from Macaus local universities who are staying and working in Macaus varying economic sectors; (2) the number and types of graduates from Macaus universities who will be required to fill in the four key areas of economic diversification in the coming five to ten years; (3) market analyses and manpower projections of the appropriate number of talents needed for the development of the four areas of economic diversification; and (4) the key private-sector organizations, including from Macau and the mainland, that will play a key role in the advancement in each of the four sectors.

Much better planning, more intensive consultation with the stakeholders, and the establishment of task forces or committees concerned will be urgent and necessary to help Macau engineer a transition from its traditional dependence on casino capitalism to the process of suitable economic diversification. Statistical date must be collected through proper sources, including census, surveys, annual reports of local universities, and targeted surveys of different occupational sectors through the assistance of economic interest groups. However, so far it seems that the Macau government is preoccupied with the issue of managing Covid-19 and its border opening with the mainland and later Hong Kong.

In conclusion, if the crisis of managing casinos within casino concessionaries can be turned into a golden opportunity of galvanizing the strengths and potentials of Macau, its suitable economic diversification will likely achieve a significant breakthrough, thereby minimizing its traditional overdependence on casino capitalism and developing a more healthy and balanced economic development. This potential breakthrough depends much on the urgent and systematic collection of survey data, the extensive consultation of various stakeholders in the society and economy, the establishment of committees necessary to propel the development of the four areas of economic diversification, a much better strategic planning on the import of mainland talents, and above all, a more organized way of coordinating and communicating with local universities on how to train the types of local talents required to bring Macau to the next phase of economic take-off away from its overdependence on casino capitalism. Political will and vision as well as much better policy formulation and implementation are imperative in Macau.

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OPINION Macau's Challenges: From Better Management of Casinos within Casinos to Suitable Economic Diversification - Macau Business

Macau Business | December 2021

MOX Executive Director and Vice President Tenny Ruan underlines the rapid expansion of the citys bond market over the past couple of years. Financial innovation, stronger ties with national and overseas partners and the joint development of Hengqin are the way forward.

Despite being at the beginning stage, the Macau bond market has been quickly expanding in the past three years with the inception of Chongwa (Macao) Financial Asset Exchange Co. Ltd (MOX), the citys only institution to facilitate bond issuances and listings. In an interview with Macau Business, Tenny Ruan, Executive Director and Vice President of MOX, shares what the institution has achieved since its establishment, including partnerships with domestic and overseas financial institutions, adding the updates of the financial legal infrastructure and incentive measures could further advance the development of the local bond market. Like other industries here at the moment, the nearby Hengqin Island also boasts new opportunities for the local financial segment.

Macau Business (MB): Chongwa (Macao) Financial Asset Exchange Co. Ltd (MOX) is celebrating its third anniversary on 12 December. Could you briefly share with us what MOX has achieved in the past three years?Tenny Ruan (TR): Bonds have been the core business of MOX since its inception in December 2018, and it has collaborated with different market players to guide bond issuances and listings in Macau by domestic and foreign issuers. As of 18 November 2021, there were 85 bond issuances/listings by 57 issuers on MOX in a total value of about MOP258.1 billion (US$32.26 billion). Among the issuances/listings, 50 were denominated in the United States dollar in a total of US$24.5 billion (MOP196 billion); 19 were denominated in yuan in a total of RMB32.5 billion (MOP40.94 billion); six were denominated in the Hong Kong dollar worth HK$11.8 billion; six were denominated in the Macau pataca totalling MOP9.4 billion; [and others].A rapid growth has been achieved in terms of the number and scale of bond issuances/listings on MOX in the past three years the compound growth rate was 205 per cent in the number of bond issuances/listings, while the compound growth rate was 275 per cent in the scale of bond issuances/listings.

Are you satisfied with what MOX has achieved so far concerning the development of the local bond market?T.R. With the support from the Macau SAR Government and the regulator, as well as the efforts from different market players, MOX the citys first financial institution to provide services of bond registration, custody, listing, trading and settlement could gradually promote the development of the Macau bond market following establishment less than three years ago. MOX has made active efforts and contributions to the exploration of a differential path for the development of Macaus modern financial industry. As part of the MOX family, I am grateful and proud of this journey, an important chapter in my career.

Which entities have issued or listed their bonds on MOX so far?T.R. The issuers that have registered and listed their bonds in Macau include: the Ministry of Finance of the Peoples Republic of China; the Peoples Government of Guangdong Province; Luso International Banking from Macau; Bank of China; Industrial and Commercial Bank of China; provincial and municipal state-owned firms like Fujian Investment & Development Group and Zhuhai Huafa Group; and Macau gaming operators like SJM Holdings Limited.

The Guangdong provincial government issued offshore bonds in the city this October with a size of about RMB2.2 billion. Could you tell us what is the significance of this issuance for the local bond market?T.R. This marks the first time for the municipal authorities from Mainland China to issue offshore bonds here. It represents another milestone for the development of the Macau bond market following the Ministry of Finances inaugural issuance of sovereign bonds in the city in 2019. The Macau bond market is now at the stage of starting from scratch and then making advancements. The pilot bond issuance by the Guangdong provincial government in Macau this time has adopted the bookkeeping system of MOX, which has also taken up multiple roles in the process namely, registration, custody, listing, trading and settlement effectively advocating the gradual improvements of the local financial infrastructure. Besides, there were 15 underwriters for this issuance, including eight Macau financial institutions, while the paying agent and trustee were also Macau financial institutions. These all pragmatically help optimise the local bond issuance process.

We look forward to the set-up of a market-oriented mechanism with the gradual improvement of regulations to expedite the integrated development of the Macau bond market with nearby regions.

In addition, this issuance has been highly recognised and well received by the international capital market with subscriptions from investors around the world. Apart from Macau, investors from Hong Kong SAR, Brazil, Australia, Japan, Taiwan region and other countries and regions have also made subscriptions. These help align the mainland provincial government bond segment with the world, as well as facilitate the healthy development of the Macau bond market.

MOX has also strived to forge different types of partnerships in the past three years, such as the cooperation between MOX and Luxembourg Stock Exchange (LuxSE). What has been achieved so far through the partnership with LuxSE? How could it benefit MOX and the local bond market?T.R. The largest equity exchange for bonds in Europe with over 37,000 bond listings and involving more than 50 currencies, LuxSE is influential in both the European and global capital markets. Following the signing of a memorandum of cooperation between MOX a financial institution focusing on the bond business and LuxSE in January 2020, both sides have kept strengthening business exchanges and promoting dual listings of bonds on both exchanges. An innovative one-stop business model for dual listings on MOX and LuxSE was created this year: on the heels of the listing on MOX, issuers can opt for the one-stop dual listing service to have their bonds listed in both the Macau and European markets at the same time [], offering a diversified listing proposal for issuers. At this moment, the US$400-million, five-year senior fixed rate notes of Sichuan Development Holding Co. Ltd, and the US$400-million, three-year senior unsecured notes of Beijing Infrastructure Investment Co. Ltd have been listed on both exchanges through the service.

The successful examples of these dual listings on both MOX and LuxSE [] mark a new chapter for the financial cooperation between Macau and Luxembourg. Looking forward, MOX will continue to seize opportunities for cooperation with LuxSE in the areas of bonds, green finance and others, attracting more quality domestic and overseas firms to pay attention to, and come to Macau.

Besides the cooperation with LuxSE, is there any more partnership with overseas equity exchanges on the pipeline?T.R. We have to acknowledge the differences between Macau, a new [bond] market, and matured financial markets. Macau has a lot to learn from and draw on the experiences from developed overseas equity markets and the robustly developing equity markets in Mainland China. Therefore, what MOX needs to do is to keep absorbing the advanced experiences from the domestic and overseas [financial] markets to improve the financial industry of the city and elevate the development of Macau modern financial service to the next level.Our cooperation with LuxSE is a good example of our constant exchanges with overseas bond registration and custody institutions, equity exchanges, financial institutions and various professional groups. MOX will actively seek to carry out cooperation with the leading markets in Asia and Europe, incorporating their successful recipes for the diversification of the Macau modern financial service.

Talking about the financial development of Macau, we often say the local regulations have to be updated to accommodate the latest financial trends and progress. The Macau government is now preparing to amend the Macau Financial System Act, dated 1993, and draft new laws on equities, funds and trust. Whats your take on what has to be done to improve the existing rules regulating the bond market?T.R. The existing regulations governing the Macau bond market are the Commercial Code, the Macau Financial System Act and the relevant guidelines issued by the Monetary Authority of Macau. As the Macau bond market is still at the starting stage, the relevant legal infrastructure has to be constantly polished with optimised guidelines and business specifications. For instance, [] Article 496 of the Commercial Code on the issuance of bonds requires that a company may issue bonds if all its members are joint-stock companies []; the Commercial Code mandates the local bond issuance has to be in paper form; Article 3 of the Macau Financial System Act on the issuance of bonds requires that should any entity in Macau issue bonds it must first acquire authorisation beforehand from the Chief Executive, who will consider the opinions from the Monetary Authority of Macau. These all could be further ameliorated. We look forward to the set-up of a market-oriented mechanism with the gradual improvement of regulations to expedite the integrated development of the Macau bond market with nearby regions.

What else could be done in the future to further advance the Macau financial industry?

T.R. The Macau financial industry has been lacking diversification, in terms of both market structure and types of entities, with the shortage of driving forces for development. As of end-2020, besides 30 banks and 25 insurers, there was only one financial firm for asset management services, two financial intermediary firms for securities brokerage service, two financial leasing companies and one financial asset trading company, while the others were small entities of money exchange and cash couriers. We suggest Macau could introduce more market players like investment banks, fund companies and asset management companies to jointly develop the local financial market.Cost and efficiency are among the major considerations whether issuers will issue bonds in Macau. The city could learn from the incentive policies of the nearby markets, such as the Pilot Bond Grant Scheme of Hong Kong and Global-Asia Bond Grant Scheme of Singapore, providing tax breaks for companies issuing bonds in the city as well as subsidising their issuance and listing costs. These could help Macau attract more quality firms for bond issuances.

A rapid growth has been achieved in terms of the number and scale of bond issuances/listings on MOX in the past three years.

The interconnectivity between the Macau bond market and the counterparts in Mainland China and abroad could also be strengthened, attracting more investors participating in the local bond market. Concerning the interconnectivity with the mainland bond market, MOX has explored various fields. During the issuance of sovereign bonds in 2019, MOX established partnership with China Central Depository & Clearing Co. Ltd (CCDC) in the mainland, facilitating the free trade zone bonds that are registered in CCDC and listed in Macau. MOXs Gateway to the Chinese Bond Market came online in December 2020, allowing the information about bond issuances in the mainland to be revealed and displayed in Macau through CCDC. The CCDC-MOX Bond Information Platform was also launched, which included five Chinese bond indexes in the first phase, providing more Chinese bond price reference benchmarks for international investors and Macau investors while building an efficient and transparent channel for international investors to access the information of the Chinese bond market. Nowadays, over 260 bonds in a total scale of RMB2 trillion are displayed at the Bond Information Platform.The awareness and participation of the global investor community in the Macau bond market has been on a hike. Thus, it is important to enhance the interconnectivity between the Macau bond market and the world to expand the pool of investors for the city and resolve the problem of liquidity in the secondary bond market. [Note: Secondary bond market is the marketplace where investors trade previously issued bonds, compared with the primary market where issuers sell bonds to the public for the first time.]

Green financing is also on your agenda

T.R. For sure, MOX has also been committed to green and sustainable financial development, successfully attracting the issuances/listings of nearly MOP50-billion green or sustainability bonds. MOX also established a partnership with the Climate Bonds Index in July 2021, the first Macau financial institution to do so []. In addition, MOX will use bonds that support long-term project financing as a starting point for green and sustainable financial development.The Policy Address for 2022, which has recently been published, mentions [the city] will advocate the modern financial development in a pragmatic manner, accelerate the cultivation of bond market, develop wealth management and finance leasing businesses, develop [Macau] as the centre for cross-border yuan settlement centre, , revise the Macau Financial System Act, remove the current approval system for bond issuance and introduce a new license type of investment banking. There is more content covering the financial industry and bond market in the Policy Address, but the content I have mentioned have already responded to some of the problems arising from the development of the Macau bond market that we have just discussed. Therefore, I believe we could purposefully resolve any problems, keep improving and achieve more breakthroughs with the guidance and support from the SAR Government.

The city could learn from the incentive policies of the nearby markets, such as the Pilot Bond Grant Scheme of Hong Kong and Global-Asia Bond Grant Scheme of Singapore, providing tax breaks for companies issuing bonds in the city as well as subsidising their issuance and listing costs.

With the recent inauguration of the Guangdong-Macau In-depth Cooperation in adjacent Hengqin Island, how could Hengqin deemed as a platform for the diversification of the citys economy help bolster the local financial development?T.R. The development plan of the Guangdong-Macau In-depth Cooperation Zone, published by the Communist Party of the China Central Committee and the State Council in September 2021, states the modern financial industry as one of the development directions of the zone with support for six goals. They are: supporting the zone to be a financial service platform between China and Portuguese-speaking countries; supporting the establishment of multi-currency venture capital funds and private equity investment funds in the zone for the high-tech and innovative industries; supporting the zone to undertake cross-border yuan settlement service; supporting Macau to develop wealth management, bonds, financial leasing and other areas of modern financial industry in the zone; supporting Macau-backed financial institutions to set up banks and insurers in the zone; supporting the start of cross-border motor vehicle insurance, cross-border medical insurance and letter of credit insurance businesses in the zone.I believe the development of the in-depth cooperation zone will inject new momentum to the long-term development of the Macau modern financial industry.

Would MOX consider setting up an office in Hengqin?T.R. In light of the MOX development, we definitely need to set up an office in Mainland China and Hengqin is one of the locations that we will first mull over.

Besides bonds, what are the other types of products and services MOX plans to cater?T.R. Apart from bond products, another type of products that MOX has been granted regulatory approval to carry out is offshore transactions of state-owned assets, providing open and transparent service for trading of equity interests, fund shares, capital and share increase of offshore state-owned enterprises. In the future, MOX will continue to complement and improve its trading products and types, and actively explore the introduction of bond exchange-traded funds (ETFs), real estate investment trust (Reits), asset-backed securities (ABS) and other products to Macau in accordance with the regulatory approval and market conditions.

And lastly, what is the future plan for MOX?T.R. Looking ahead, what MOX has to do is to stay true to its original aspirations. We will continue to focus on the bond business and cooperate with the strategic plan of the Macau SAR government, enriching our product types and enhancing the credibility and brand influence of MOX. With due commitments to the financial market, MOX will continue to facilitate the development of the financial industry as a driving force for the economic restructure of Macau. We are prepared to serve as a trailblazer for a long time, as we understand that it takes time to nurture and develop an emerging market. But we firmly believe that the Macau financial industry will eventually become a new namecard of the city.

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It is important to enhance the interconnectivity between the Macau bond market and the world - Macau Business

More powerful, destructive, and deadlier storms will be the new normal as the effects of climate change take root, the top US emergency management official said Sunday after massive tornadoes ravaged six states.

Meteorologists and other scientists have long warned of the growing intensity of weather events like storms, fires and flooding.

But the crisis hit home in a terrifying way overnight Friday into Saturday when more than two dozen twisters raked across large swaths of the American heartland, leaving more than 90 people dead, dozens missing and communities in ruin.

This is going to be our new normal, Deanne Criswell, head of the Federal Emergency Management Agency, told CNNs State of the Union as she did a round of national Sunday morning talk shows before she headed to Kentucky to assess the damage and help coordinate the federal response.

The effects that were seeing from climate change are the crisis of our generation, the FEMA chief added.

Criswell warned of the challenge that the United States faces in addressing such severe weather events.

Were seeing more intense storms, severe weather, whether its hurricanes, tornadoes, wildfires, she said on ABCsThis Week.

The focus Im going to have is, how do we start to reduce the impacts of these events?

The tornado that reduced several towns to rubble was a gargantuan twister. It rumbled along the ground for over 200 miles (320 kilometers), one of the longest, if not the longest, on record.

US President Joe Biden said Saturday the storm system was likely one of the largest tornado outbreaks in our history.

And while he stressed that the impact of climate change on these particular storms was not yet clear, we all know everything is more intense when the climate is warming everything.

Scientists have stopped short of conclusive determinations that more violent storms are the result of climate change, but they agree that evidence is building.

One paper published recently by scientific association AGU says its analysis suggests increasing global temperature will affect the occurrence of conditions favorable to severe weather.

Daniel Swain, a UCLA climate scientist, tweeted Saturday in response to the study, saying that while the effect of climate change on severe weather like tornadoes is not well established, there is a growing body of research (including this late-breaking paper) suggesting that warming likely does increase such risks in many regions globally.

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Severe weather 'new normal,' US emergency chief warns after tornadoes - Macau Business

The G7 on Sunday said time was running out for Iran to agree a deal to curb its nuclear ambitions, and warned Russia about the consequences of invading Ukraine.

Foreign ministers from the worlds richest nations have held a two-day meeting in Liverpool, northwest England, seeking to present a strong, united front against global threats.

On Iran, G7 host Britain said resumed talks in Vienna were the Islamic Republics last chance to come to the negotiating table with a serious resolution.

There is still time for Iran to come and agree this deal, Foreign Secretary Liz Truss told a news conference as talks wrapped up.

Negotiations restarted on Thursday to try to revive the 2015 deal between Iran and world powers, which the United States withdrew from under Donald Trump in 2018.

Iran claims it only wants to develop a civilian capability but Western powers say its stockpile of enriched uranium goes well beyond that, and could be used to develop a nuclear weapon.

US President Joe Biden has said he is ready to return to the agreement and Iranian officials maintain they are serious about committing to the talks.

But Western powers have accused Tehran of backsliding on progress made earlier this year and are playing for time.

Truss comments are the first time a signatory to the original deal has given an ultimatum for the talks.

Britain, which hands over the G7 presidency to Germany next year, portrayed the two-day conference in Liverpool, northwest England, as a chance to stand up to authoritarianism around the world.

As well as Iran, Russias build-up of troops on the border with Ukraine dominated talks, given fears of a possible invasion of the former Soviet state.

Truss said there was very much a united voice that there will be massive consequences for Russia in the case of an incursion into Ukraine.

A senior US State Department official on Saturday said a large number of democratic countries were ready to join the G7 nations of Britain, Canada, France, Germany, Italy, Japan and the United States in taking action.

Biden earlier this week held a virtual summit with his Russian counterpart Vladimir Putin to voice Western concerns.

He is sending his top diplomat for Europe and Eurasian affairs to Kiev and Moscow next week to try to end the stand-off by diplomatic means.

Russia says the military build-up is a defensive measure against Ukraine moving closer to NATO.

Pope Francis brought up Ukraine when speaking to a crowd in St Peters Square on Sunday.

I would like to assure my prayer for the dear Ukraine, for all its churches and religious communities and for all its people, that tensions will now be resolved through serious international dialogue and not with weapons, he said following the Angelus prayer.

From Liverpool, US Secretary of State Antony Blinken flies on to southeast Asia as part of Washingtons push for peace, security and prosperity in the Indo-Pacific region.

Britains G7 presidency this year has been dominated by responding to Beijings alleged widespread domestic rights abuses, as well as creeping authoritarianism in its former colony, Hong Kong.

Earlier this week, a panel of human rights experts and lawyers said China had committed genocide in its Xinjiang region by imposing population controls on minority Muslim Uyghurs.

Beijing rejected the report, accusing it of anti-China bias.

Truss said she and her counterparts were concerned about Chinas coercive economic policies and there was a need to counter them with their own initiatives as an alternative.

What we want to do is build the investment reach, the economic trade reach of like-minded freedom-loving democracies, she added.

That is why were stepping up our investment into low and middle-income countries.

At a G7 leaders meeting in June in Cornwall, southwest England, the grouping unveiled plans for what it said was a more equitable global infrastructure fund than Chinas Belt and Road Initiative.

The Chinese trillion-dollar scheme has been widely criticised for saddling smaller countries, particularly in Africa, with unmanageable debt.

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G7 issues strong warnings on Iran and Russia - Macau Business

Whether to choose to live with the novel coronavirus or to prevent it from infecting people by completely cutting the channels of its transmission? On this, Chinas practice differs from that of most developed countries. This is also why those countries that have chosen the way of herd immunity have long sought to cast doubts on the way China controlled the virus.

Some countries, considering the virus to be just another kind of flu, decided to lift all control and prevention measures months ago. The Omicron variant of the virus has taught them a lesson about how transmissible and devastating it can be.

Hundreds of thousands of new cases on a daily basis have once again turned the societies of many countries into a mess, and the governments of these countries have had to tighten control and prevention measures, mandating social distancing and the wearing of a mask.

The total number of infections in the United States alone has surpassed 50 million and the death toll has reached more than 800,000, with nearly 2,000 new deaths on a daily basis.

The situation in China is in sharp contrast with that in those countries.

Putting peoples lives and health before everything, China has adopted strict control and prevention measures, which has won the cooperation of its people. Everyone is required to wear a mask in any public place and big data technology has been adopted to screen close contacts of the infected. Wherever a case is identified, the measures necessary to quarantine those close contacts and monitor those indirect contacts to cut off all channels for the transmission of the virus are immediately adopted.

As a result, China has generally kept the virus at bay and become the only major country in the world which has kept its economy operating as normal in the past two years. The entire Chinese society is running as it was before the pandemic.

It is no surprise that the country was the only major economy to register positive growth in 2020. The countrys economy will continue to perform in a healthy and stable manner no matter what havoc the pandemic creates in the rest of the world.

This is because the Chinese government has adopted the right approach. It is also because the countrys political system and institutions have made it possible for all the control and prevention measures to be implemented smoothly from the top to the grassroots.

Chinas excellent export performance has protruded how its success in responding to the pandemic has facilitated the development of its economy and has also brought to prominence how the failure of some major economies in their control of the pandemic has plagued their economic performance.

It is obvious that China is injecting vitality into the global economy with its success in containing the pandemic.

Editorial, China Daily

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China Daily | China did the right thing to contain Covid-19 - Macau Daily Times

The Omicron coronavirus variant is more transmissible than the Delta strain and reduces vaccine efficacy but causes less severe symptoms according to early data, the World Health Organization said Sunday.

The Delta variant, first identified in India earlier this year, is responsible for most of the worlds coronavirus infections.

But South Africas discovery of Omicron which has a large number of mutations last month prompted countries around the world to impose travel bans on southern African countries and reintroduce domestic restrictions to slow its spread.

The WHO said Omicron had spread to 63 countries as of December 9. Faster transmission was noted in South Africa, where Delta is less prevalent, and in Britain, where Delta is the dominant strain.

But it stressed that a lack of data meant it could not say if Omicrons rate of transmission was because it was less prone to immune responses, higher transmissibility or a combination of both.

Early evidence suggests Omicron causes a reduction in vaccine efficacy against infection and transmission, the WHO said in a technical brief.

Given the current available data, it is likely that Omicron will outpace the Delta variant where community transmission occurs, it added.

Omicron infections have so far caused mild illness or asymptomatic cases, but the WHO said the data was insufficient to establish the variants clinical severity.

South Africa reported Omicron to the WHO on November 24. Vaccine manufacturers Pfizer/BioNTech last week said three doses of their jabs were still effective against Omicron.

Countries with sufficient vaccine supplies such as Britain and France have encouraged their populations to receive a third booster jab to fight Omicron.

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Omicron spreads faster and weakens jabs: WHO - Macau Business