Page 196 - AmCham South China 2026 Special Report on the State of Business in South China

internationalizing the TCM industry, strengthening dedicated fund management companies (SGF),
regional cooperation, accelerating academic which may be incorporated as S.A., as well as
development and talent cultivation, and improving to banks, finance companies and other AMCM-
regulatory systems. licensed financial institutions.

? Macau will promote modern finance, ? Broader permitted activities for fund
diversify financial services, enhance financial managers: SGFs are authorized to provide a wide
infrastructure and further increase the share of range of services beyond collective investment
finance in the city¡¯s GDP and employment structure. management, including discretionary portfolio
management, liquidity and hedging, research,
? The plan pledges substantive progress in valuation, administration and ancillary support to
developing new and high-tech industries by 2028 portfolio companies.
and better integration into the national science and
technological strategy, enabling Macau to play a ? Modernized depositary and service
greater role in building the GBA innovation corridor. provider framework: The law expands the pool
of eligible depositaries to include prudentially
? Macau will build a supportive environment supervised foreign custodians recognized by
for sci-tech startups, strengthen services and AMCM, addressing the previous scarcity of local
industries support, and promote cooperation expertise. Both managers and depositaries may
between industry and academia to commercialize outsource functions under detailed contractual
research outcomes. It will also work to cultivate safeguards and sub-delegation is permitted if
internationally recognized convention and equivalent standards are maintained.
exhibition brands, deepen cooperation with
global partners and steadily increase the share of ? Enhanced investor protection: The IFL
e-commerce in total transaction volumes. significantly strengthens investor protection
by expanding the required content of fund
Investment Funds Law empowers prospectuses and Key Information Documents
166
Macau to enter a new era of asset (KID) to include risk grading, valuation
management and financial diversification methodology, related-party transaction policies
and unitholder meeting rules. Public funds must
On 14 July 2025, the Legislative Assembly of the publish audited annual and semi-annual reports
Macau passed the landmark Investment Funds within 90 and 60 days, respectively. A new
Law (IFL), marking the first comprehensive reform unitholder assembly regime is introduced, with
of Macau¡¯s investment funds regime since Decree- defined quorum, notice and voting thresholds for
Law 83/99/M of 1999. Key objectives include: material changes. Quantitative limits include a
20% group-issuer cap for securities funds and risk-
? Expanded typology and organizational weighted exposure ceilings set by AMCM. Related
flexibility: The IFL introduces a dual public?private party transactions, previously banned, are now
fund architecture. Public funds may raise capital permitted if they meet arm¡¯s-length, disclosure
from the public, while private funds are limited and fiduciary-oversight requirements.
to non-public offerings to qualified investors as
defined by Monetary Authority of Macau (AMCM). ? Cross-border activities and re-domiciliation:
Macau-domiciled funds may be marketed abroad
? Removal of market entry barriers: The upon AMCM notification, while foreign public
IFL repels the previous 30-investor and MOP10 funds require AMCM authorization to be offered
million minimum subscription thresholds for in Macau. Foreign private funds may be privately
fund constitution and abolishes the annual placed through licensed distributors.
supervisory charge of 0.1 ¡ë on net asset value.
Fund management licenses are now available to ? Finality of settlement and collateral: The
166 Government site of Macau, https://www.gov.mo/ IFL grants statutory irrevocability to securities-
en/content/laws/ settlement orders and close-out netting under

196 197