Coordinated Portfolio Investment Survey, 31 December 2014

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. The results as at 31 December 2014 are summarised as follows: On 31 December 2014, 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 MOP399.1 billion at current market value, down by 4.1% from 30 June 2014 yet up by 2.3% year-on-year. Among various instruments of portfolio investment, equity securities, long-term debt securities and short-term debt securities were valued at MOP155.0 billion, MOP228.9 billion and MOP15.2 billion respectively. In comparison with end-2013, investment in equity securities, of which mutual funds and investment trust units amounted to MOP32.0 billion, dropped by 9.5%. Investment in long-term debt securities and short-term debt securities grew by 12.2% and 2.5% respectively. By geographical distribution, the Asian region made up the largest share of Macao residents’ external portfolio investment at 70.1%. The rest was mainly placed in Europe (10.6%), North Atlantic and Caribbean (10.3%), North America (6.3%) and Oceania (2.3%). Investment in securities issued by Mainland Chinese entities, including those securities listed on non-Mainland exchanges, continued to assume the leading position, occupying 48.3% of local residents’ portfolio investment outside Macao. Its market value reached MOP192.9 billion, 8.2% up from a year ago. The investment consisted of MOP28.2 billion in equity securities, MOP151.7 billion in long-term debt securities and MOP13.0 billion in short-term debt securities, constituting 18.2%, 66.3% and 85.5% of the respective total. On the other hand, the share of investment in securities issued by Hong Kong entities fell from 29.7% at end-2013 to 18.3%, with the corresponding market value falling by 36.9% to MOP73.1 billion, of which equity securities and long-term debt securities amounted to MOP58.2 billion and MOP13.6 billion respectively. The share of investment in European securities rose by 1.9 percentage points from end-2013 to 10.6%, and the corresponding market value surged by 24.3% to MOP42.3 billion. Among European countries, Luxembourg took the largest share with a market value of MOP14.5 billion, an increase of 10.8% from end-2013. Meanwhile, the market value of Macao residents’ portfolio investment in the United Kingdom picked up by 21.9% from end-2013 to MOP8.8 billion. Investment in the Netherlands, Ireland and France also grew by 131.4%, 26.7% and 9.2% respectively in market value. Macao residents’ portfolio investment in the North Atlantic and Caribbean continued to increase. The market value of investment in this region rose by 33.1% from end-2013 to MOP41.2 billion, with its share in the total investment abroad rising to 10.3%. In particular, the market value of portfolio investment in the Cayman Islands and the British Virgin Islands swelled by 41.1% and 54.0% from end-2013 to MOP25.0 billion and MOP9.7 billion respectively, whereas that in Bermuda dipped by 4.9% to MOP6.4 billion. The bulk of investment in North America was placed in the United States. The market value of Macao residents’ investment in US securities soared by 154.9% from end-2013 to MOP22.6 billion, pushing the corresponding share in the total portfolio investment abroad up from 2.3% to 5.7%. The market value of investment in long-term US debt securities grew by 40.4% year-on-year to MOP8.9 billion, representing the fourth largest share in the respective category. During 2014, Macao residents’ investment in long-term debt securities issued by Australian entities surged by 183.6% to a market value of MOP8.6 billion, which lifted the share of portfolio investment in Oceania from 1.0% a year ago to 2.3% at end-2014.