MACAU SAR, CHINA Law and Practice Contributed by: Frederico Rato, Pedro Cortés and Calvin Tinlop Chui, Lektou
Lektou Macau Landmark Office Tower Floor 23 Avenida da Amizade 555 2301-2304
Macau SAR, China Tel: +853 2856 2322 Fax: +853 2858 0991 Email: mail@lektou.com Web: www.lektou.com
1. Loan Market Overview 1.1 The Regulatory Environment and Economic Background
While the economy has taken a hit, financial ser- vices and their regulatory framework are expected to embrace further developments in the near future, particularly in bonds, trusts and investment funds ser- vices. 1.2 Impact of Global Conflicts The impact of global conflicts on Macau has been indirect. Consumer prices and inflation rates have remained steady and low. 1.3 The High-Yield Market The issuance and listing of bonds in Macau are pri- marily confined to certain types of corporate entities, particularly those originating from Mainland China. Traditional financing terms and structures therefore remain relatively unaffected. 1.4 Alternative Credit Providers Credit activities are highly regulated in Macau, and, in general terms, credit can only be provided by licensed banks and finance companies. Traditional banks aside, there was only one finance company that had been established in Macau. Very recently however, some fintech platforms have begun offering non-tra- ditional forms of micro and SME financing, signalling the advent of alternative credit models. 1.5 Banking and Finance Techniques Due to the economic surge in Macau over the past decade, traditional banks are actively promoting pri- vate banking and wealth management to serve high
The mainstays of the economy of the Macau Special Administrative Region (the “Macau SAR”) are the tour- ism and entertainment sectors. The dominant forces in the growth and development of the Macau loan market – residential mortgage loans (RMLs) and commercial real estate loans (CRELs) – have fluctuated significantly. According to the Macao Economic Bulletin – jointly published by the Macau Economic Bureau, the Monetary Authority of Macau (AMCM) and the Statistics and Census Service – new RMLs approved in June 2025 rose by 11.7%% month- on-month to MOP1.06 billion, while new CRELs approved in June 2025 increased by 227.7% month- on-month to MOP 1.88 billion. The outstanding value of CRELs fell by 5.5% year-on-year to MOP145.54 billion, and the outstanding value of RMLs fell by 5.4% year-on-year to MOP212.58 billion. Considering the current economic situation, the finan- cial sector has been viewed as a fitting candidate to assist Macau in developing a more diversified econ- omy. The government has made it clear that a series of actions will be taken to nurture a more prominent bond market in Macau. It is worth noting that, this year (2025), the Ministry of Finance of the People’s Republic of China and the People’s Government of Guangdong Province have both issued government bonds in Macau, marking the fifth consecutive year of doing so.
348 CHAMBERS.COM
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