Introduction:

The concept of the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”) is currently a hot topic in China, the Central government stressed the importance of developing the GBA and it is indeed included in the national development strategic plan.  China has planed for each municipality in consideration of their historical background, strengths and weaknesses, anticipating with collaborative efforts to complement each other will bring positive results for economic developments.  Therefore, connectivity and mutual access to each other’s market is extremely important and this note explores different policies where the Central government has implemented in terms of connectivity for the financial industry within the GBA and with special focus in a Macao perspective.

The paper primarily explores the historical background of Macao in shaping the city as it is today; resulting in an imbalanced industrial structure which is not beneficial to the overall development of the city, especially in times of the pandemic where most of the businesses in Macao are seriously affected.  The second part of the paper examines the Policy Address of the Macao government in 2021 and 2022 and the call for diversification of the industrial structure for Macao; and the importance of strengthening other industries in order to achieve a sustainable economic development.  The third part of the paper examines the legal regime of the GBA and the policies implemented between the Chinese mainland and Macao; and the co-operation for the construction of the Hengqin Guangdong-Macao In-depth Cooperation Zone.  The fourth part of the paper examines different types of schemes implemented for mutual market access between the Chinese mainland and the Special Administrative Regions including the Cross-Boundary Wealth Management Scheme, Stock Connect Scheme which promotes connectivity between the Stock Exchanges in China and finally different mutual access schemes which promote the connectivity between Macao’s bond market with that of the Chinese mainland and of Europe.  The paper concludes with suggestions for the further development of Macao’s financial industry.