(Yicai Global) Oct. 14 -- A plan to establish a securities exchange in Macao has been sent to China's central government, according to a local official in neighboring Guangdong province.

The establishment of a yuan-denominated securities market is still under study, the Securities Times reported, citing the Monetary Authority of Macao as saying.

To meet the requirements of the Guangdong-Hong Kong-Macao Greater Bay Area's development, the authority has retained global consultancies to conduct a feasibility study on setting up a yuan-backed securities market in Macao and relevant work is underway, the authority said in a statement on its official account on China's popular WeChat messaging app.

"We helped the government of the Macao Special Administrative Region with a plan to establish a Nasdaq-style offshore yuan securities exchange, which has been submitted to the central government," He Xiaojun, director of the Guangdong Local Financial Supervision and Administration Bureau, said at an Oct. 12 forum.

Given the mature financial centers nearby, Macao must fully understand its own advantages to break through into this sector and achieve differentiated development, the authority said, adding the feasibility study would bring Macao's advantages into full play and serve the nation's needs based on a comprehensive consideration dynamic of the Greater Bay Area.

The special administrative region has unique advantages in setting up a securities market with its freely convertible monetary system, low tax regime, large capital flows and high-degree of internationalization, the Securities Times cited an unidentified expert as saying.

It may build a financial platform focused on serving the securities and the financial leasing markets to attain its own development model that diverges from those of the Shenzhen and Hong Kong exchanges.

Editor: Ben Armour