MACAO is considering launching a yuan-based stock market to help it diversify away from gaming, its main source of revenue, and align the territory more with the country’s growth plans for the Greater Bay Area in the southern region.

Macao’s Monetary Authority said in an email that it was starting feasibility studies for a securities market, including a stock market which would “leverage Macao’s advantage to serve the country’s needs,” compared with established centers Hong Kong and Shenzhen.

The world’s biggest casino hub, Macao has struggled to shift its economy away from gaming where gross gaming revenue totaled US$38 billion in 2018. The gaming industry contributes to more than 80 percent of government revenues.

“Macao has a very strong position in promoting itself as the financial service platform between the mainland and Portuguese-speaking countries and the mentioned feasibility studies will be conducted under this context and advantages,” the monetary authority said.

The State Council earlier this year unveiled guidelines for the Greater Bay Area around the Pearl River Delta, to spur growth in Guangdong Province and the cities of Hong Kong and Macao.

The plan stated it would support Macao in developing financial products and services as well as a securities market and a green finance platform.

Macao has started to develop financial leasing, wealth management and yuan clearing but services and volumes pale in comparison with neighboring Hong Kong.

The government last year approved the first financial institution, called Chongwa (Macao) Financial Asset Exchange Co., to provide bond trading. There have been three bond issuances listed so far.

Macao’s yuan securities market “won’t be competing with Hong Kong, we will be complementary to Hong Kong,” the monetary authority said.(SD-Agencies)