A&O Shearman advises on ICBC Macau branch’s issuance of USD bonds following the launch of direct linkage between the bond markets of Macau and Hong Kong

The bond is listed on the Chongwa (Macao) Financial Asset Exchange Co., Ltd. and cleared through Macao Central Securities Depository and Clearing Limited (MCSD) in direct linkage with Central Moneymarkets Unit (CMU). This represents one of the first bonds issued and listed in Macau following the official launch of the direct linkage between CMU operated by CMU OmniClear Limited (a wholly-owned subsidiary of the Exchange Fund) in Hong Kong, and the central securities depository operated by MCSD (a wholly-owned subsidiary of the Monetary Authority of Macao) on January 21, 2025.

Under the direct linkage arrangement, investors in Hong Kong, through their accounts at CMU, will be able to clear, settle and hold bonds lodged with MCSD.

Agnes Tsang A&O Shearman partner commented: “We are grateful for the opportunity to support ICBC Macau Branch’s USD bond issuance in Macau, which marked one of the first issuances following the launch of the direct linkage between MCSD and CMU. The direct linkage provides a cross-border investment and financing channel and enables investors from both Hong Kong and Macau markets to participate in each other's bond market with greater ease and efficiency”. “We are excited to be part of this efforts that foster financial cooperations between the cities and look forward to continuing our support that further contribute to the development of the financial markets in the Greater Bay Area.” Agnes added.

The A&O Shearman team was led by Partner Agnes Tsang, with support from Gordon Ng, Eileen Qu and Michael Leung.