China to issue yuan bonds to diversify Macau's gambling-centered economy

Later this month, China will issue 5 billion yuan in bonds to Macau. The gambling industry in Macau accounts for more than half of the province's GDP, but China wants to diversify its economy so that the territory creates other revenue streams.

This August, Macau had 686% yearly growth and earned $2.14 billion in total gaming revenue. Furthermore, in addition to its economic diversification goals, the bonds are being issued to promote the usage of the yuan currency in Macau.

 

[mosesdera]

Some will see this as China just wanting more control over Macau. The special administrative region has operated autonomously for years, but issuing yuan could strengthen China's economic dominance. As gambling revenue grows elsewhere in Asia, Macau may lose bargaining power.

 

[Btaliat]

A country that wants development will be doing everything in its capacity to ensure there is diversion in the economy. A country should not be generating fund in just one one source or else, such a country may collapse.