Macau to receive over RMB3.2 billion in dividends from Guangdong Cooperation Fund

Macau has received at least RMB3.2 billion in dividends from the cooperation fund with Guangdong, more than halfway through its 12-year term.

In June 2018, the Guangdong-Macao Cooperation and Development Fund was launched in Hengqin to promote the development of the Greater Bay Area.

According to the cooperation agreement signed at the time, the initiative was set up with an intended duration of 12 years.

As a financial investor, Macau has committed to invest a total amount of RMB 20 billion from its fiscal reserve in several installments.

According to a recent update from the Macao Monetary Authority to legislator Si Ka Lon, the guaranteed returns paid out by the fund last year amounted to about RMB 700 million. The amount was already transferred in May this year.

To date, the total dividend paid is RMB 3.2 billion.

“The fund has been in existence for six years and operates on a cyclical investment model, covering a variety of sectors such as infrastructure, energy and technology,” said Chan Sau San, chairman of the Monetary Authority of Macau.

“There are currently 17 ongoing investment projects, seven of which cover the Greater Bay Area of ​​Guangdong, Hong Kong and Macau.”

By the middle of next year, 2025, the fund will have reached its seventh year of existence.

According to the established mechanism, in addition to the 3.5 percent annual return for the special administrative region, the average annual return after the first seven years is calculated to determine whether there is an entitlement to an additional bonus.

If the result is higher than 7.8 percent, Macau is entitled to a 55 percent share of the excess profit.