Coordinated Portfolio Investment Survey, 30 June 2015

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 30 June 2015 are summarised as follows: On 30 June 2015, 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 MOP439.0 billion at current market value, up by 10.0% from 31 December 2014 or 5.5% year-on-year. Among various instruments of portfolio investment, equity securities, long-term debt securities and short-term debt securities were valued at MOP172.7 billion, MOP233.1 billion and MOP33.1 billion respectively. In comparison with end-2014, investment in equity securities, of which mutual funds and investment trust units amounted to MOP39.9 billion, increased by 11.5%. Investment in long-term debt securities and short-term debt securities grew by 1.8% and 117.4% respectively. By geographical distribution, the Asian region still made up the largest share of Macao residents’ external portfolio investment at 66.0%. Investment in the North Atlantic and Caribbean overtook that in Europe for the first time with a share of 12.3%, while investment in Europe constituted 10.4%. The rest was mainly placed in North America (8.0%) and Oceania (2.7%). Investment in securities issued by Mainland Chinese entities, including those securities listed on non-Mainland exchanges, continued to assume the leading position, occupying 44.3% of local residents’ portfolio investment outside Macao. Its market value reached MOP194.6 billion, registering a slight increase of 0.9% from end-2014. The investment consisted of MOP44.2 billion in equity securities, MOP136.9 billion in long-term debt securities and MOP13.4 billion in short-term debt securities, constituting 25.6%, 58.7% and 40.4% of the respective total. On the other hand, the share of investment in securities issued by Hong Kong entities edged up by 0.1 percentage point from end-2014 to 18.4%, with the corresponding market value increasing by 10.3% to MOP80.6 billion, of which equity securities and long-term debt securities amounted to MOP47.7 billion and MOP16.8 billion respectively. Macao residents’ portfolio investment in the North Atlantic and Caribbean achieved its record-high. The market value of investment in securities issued by entities in this region rose by 31.6% from end-2014 to MOP54.2 billion, with its share in the total investment abroad rising to 12.3%. In particular, the market value of portfolio investment in the Cayman Islands, the British Virgin Islands and Bermuda grew by 23.0%, 42.1% and 49.1% to MOP30.8 billion, MOP13.8 billion and MOP9.6 billion respectively. Although the share of investment in European securities dipped by 0.2 percentage points from end-2014 to 10.4%, the corresponding market value increased by 8.3% to MOP45.8 billion. Among European countries, Luxembourg took the largest share with a market value of MOP14.2 billion, a mild contraction of 2.2% from end-2014; investment in the Netherlands also fell by 1.1% in market value. Meanwhile, the market value of Macao residents’ portfolio investment in the United Kingdom picked up by 20.3% from six months ago to MOP10.6 billion. Investment in Ireland and Switzerland also grew by 15.6% and 7.7% respectively in market value. The bulk of investment in North America was placed in the United States. The market value of Macao residents’ investment in US securities surged by 42.2% from end-2014 to MOP32.1 billion, pushing the corresponding share in the total portfolio investment abroad up from 5.7% to 7.3%. Of which, the market value of investment in long-term US debt securities soared by 90.4% to MOP16.9 billion, representing the second largest share in the respective category. As at end-June 2015, Macao residents’ investment in securities issued by Australian entities increased by 30.7% to a market value of MOP11.8 billion, which lifted the share of portfolio investment in Oceania from 2.3% six months ago to 2.7%.