Coordinated Portfolio Investment Survey, 30 June 2013

The Coordinated Portfolio Investment Survey (CPIS), jointly conducted by the Monetary Authority of Macao (AMCM) and the Statistics and Census Service (DSEC), is aimed at collecting information on Macao residents' investment in securities issued by unrelated non-residents, in terms of market value and geographical distribution. Starting in 2013, in response to the request of the International Monetary Fund and to reinforce the continuous surveillance of cross-border fund flows, the CPIS has been changed from an annual task to a bi-annual survey, collecting information on Macao residents' investment in external securities at end-June and end-December of each year, respectively. The results as at 30 June 2013 are summarised as follows: On 30 June 2013, investment of Macao residents (including individuals, the government and other legal entities but excluding Macao's foreign exchange reserves) in securities issued by unrelated non-residents reached a record-high of MOP310.6 billion at current market value, up by 18.4% from a revised value of MOP262.3 billion at end-2012. Among the total portfolio investment abroad of Macao residents, equity securities, long-term debt securities and short-term debt securities were valued at MOP138.6 billion, MOP159.4 billion and MOP12.6 billion respectively. In comparison with end-2012, investment in equity securities, of which mutual funds and investment trust units accounted for MOP21.6 billion, rose by 3.9%. Investment in long-term debt securities and short-term debt securities increased by 35.6% and 11.6% respectively. By geographical distribution, Macao residents' holdings of securities issued by entities in Asia held the largest share of 75.5% in the total external portfolio investment. The rest was placed in Europe (11.2%), Americas (11.0%) and Oceania (1.3%). Mainland China continued to assume the leading position, occupying 41.7% of the total market value of local residents' portfolio investment outside Macao. The rest was mainly invested in Hong Kong, the Cayman Islands, Luxembourg, the United States, the United Kingdom, the British Virgin Islands, Bermuda and the Netherlands. Investment in securities issued by entities in Mainland China, including those securities listed on non-Mainland exchanges, amounted to MOP129.6 billion, a marked increase of 39.9% or MOP36.9 billion from end-2012. It consisted of MOP25.0 billion in equity securities, MOP96.7 billion in long-term debt securities and MOP7.9 billion in short-term debt securities, constituting 18.0%, 60.7% and 63.1% of the respective total. The share of investment in securities issued by entities in Hong Kong fell from 32.4% at end-2012 to 30.0%. Nevertheless, the corresponding market value increased by 9.7% to MOP93.3 billion, of which investment in equity and debt securities rose to MOP77.1 billion and MOP16.2 billion respectively. The share of investment in European securities dropped by 3.0 percentage points from end-2012 to 11.2% and the corresponding market value also dropped by 6.9% to MOP34.7 billion. Among the European countries, Luxembourg took the largest share with a total market value of MOP11.2 billion, an increase of 31.1% from end-2012. On the other hand, the market value of Macao residents' portfolio investment in the United Kingdom stood at MOP7.3 billion, a reduction of 11.8% from six months ago. Meanwhile, the market value of portfolio investment in the Netherlands, Germany and France also slid by 20.6%, 17.4% and 15.2% respectively. The share of US securities held by Macao residents edged down from 3.5% at end-2012 to 3.1% but the corresponding market value rose by 4.3% to MOP9.5 billion. The investment in long-term US debt securities rebounded from MOP6.6 billion at end-2012 to MOP7.0 billion, taking up the third largest position in the respective category.