Macau is considering a yuan-denominated stock exchange as the world’s gambling hub looks to diversify away from casinos

Macau 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 China’s growth plans for the Greater Bay Area in the country’s southern region.

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

The former Portuguese colony and now the world’s biggest casino hub, has struggled to shift its economy away from gambling where gross gaming revenue totalled US$38 billion in 2018. The gaming industry contributes to more than 80 per cent of government revenues.

Beijing is pushing for the special administrative region of Macau to become an international tourism destination as well as a platform for trade and business between Portuguese speaking countries and China. “Macau 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.

China’s cabinet 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 Macau.

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