China is eyeing Macau as its financial center akin to Hong Kong.
The Cog Turners for Change
It is no secret what has been happening in Hong Kong over the past few months. Protests have been raging ever since the extradition was brought onto the table. Since then, protests have been escalating at a maddening pace.
With how crazy it has gotten, the world has taken notice. Several countries have voiced their support for Hong Kong. The United States has passed two relevant bills that show their solidarity and support for Hong Kong.
One is the Hong Kong Human Rights and Democracy Act. This act monitors Hong Kong’s democractic status and looks to impose trade penalties if it is being hampered.
The other is the Uighur Act. This act calls for China’s “re-education” camps to be shut down and that the Uighur population be set free. It also calls on punishments to be put on those who supported or made these camps operate.
Apart from these two acts, a number of countries have denounced what was happening in Hong Kong.
Macau though was silent.
Macau has been relatively quiet about everything happening in Hong Kong. Officials and executives in Macau see this as the biggest reason why China looks to move its financial hub there. It is seen as a “reward” by the officials.
The Chinese government though plays a different tune. In a statement, they did acknowledge that the financial center was reserved for Hong Kong. All favorable policies were placed there. Now though, they stated that they are seeking to diversify their financial hubs.
Next week, China’s President Xi Jinping will be visiting the country. Once there, he will be announcing several policies that look to take Macau’s casino-based economy and make it bloom into a full-blown financial hub.
Included in these policies is the setting up of a stock exchange that is wholly run in Yuan. Apart from that, they also look to hasten the building of the renminbi settlement center. Finally, they are offering some land in China that Macau can build on.
The Chinese government has already reached out to key institutions to help with the change in Macau. They have spoken to banks and enterprises, urging them to help out by setting up infrastructures and providing financial aid when needed.
Key people who have helped develop the Shanghai stock exchange have already moved into the area.
It can be seen that this move acts as a safety net for Chinese businesses. If any disruptions were to occur due to what was happening in Hong Kong, then things can continue on with the financial hub in Macau.