" Macau could overtake Hong Kong within five years in terms of financing."

 nov23

Micro Connect’s founder, Charles Li, has expressed confidence that Macau could overtake Hong Kong within five years in terms of financing.

In an interview with HK01, the former CEO of the Stock Exchange of Hong Kong said that the city had a complementary role to play alongside its neighboring financial hub.

“Macau is like a large flour mill that requires no massive financial infrastructure,” Li was quoted as saying. “However, when it comes to transforming flour into consumer goods like bread and conducting sales, it needs Hong Kong as an international financial centre.”

“Macau lacks a comprehensive financial system. Many investors cannot directly purchase DROs (daily revenue obligations) there, and need to resort to licensed institutions in Hong Kong to convert them into investable DRPs (daily revenue portfolios),” he added.

His remarks come about three months after a ceremony was held to mark the official launch of the Micro Connect Macao Financial Assets Exchange.

In reality, the marketplace dedicated to raising funds for small and medium-sized businesses in mainland China began trial operations in March this year, with partnerships forged with at least 10,000 enterprises to date.

Among them is Hao Yue Catering Group Company – the first business in Macau to receive funding from Micro Connect.

The investment platform dependent on a system of daily revenue contracts and obligations secured an injection of US$458 million (MOP3.69 billion) earlier this year to set its launch in motion.

In addition, Bank of China Macau Branch announced in September a loan project for Micro Connect worth some RMB210 million (MOP235.8 million/ US$29 million).

During the interview, Li revealed that the exchange operator had previously approached Hong Kong and Singapore regarding the possibility of basing the company in the regions.

However, financial regulators in both regions expressed concerns about the workings of its revenue-sharing system, citing concerns related to regulation and scrutiny.

Contrarily, the Macau authorities considered the system to be similar to the way gaming tax is collected, he explained, when asked about the rationale behind the decision to base the company in Macau.

According to Li, Micro Connect is exploring the possibility of listing on Hong Kong’s stock exchange in the future, a goal to be achieved in five years.

He believes that Macau will by then achieve a greater amount of financing than Hong Kong, which he said currently boasts an annual volume of at least HKD100 billion.

https://www.macaubusiness.com/micro-connect-eyes-propelling-macau-ahead-of-hong-kong-in-financing/

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