Coordinated Portfolio Investment Survey – 30 June 2016

According to the statistics released today by the Monetary Authority of Macao, on 30 June 2016, 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 MOP443.2 billion at current market value, representing an increase of 1.0% from both end-2015 and the same period last year. Among various instruments of portfolio investment, equity securities (including mutual funds and investment trust units), long-term debt securities and short-term debt securities were valued at MOP168.7 billion, MOP258.3 billion and MOP16.2 billion respectively, which corresponded to a decrease of 0.8%, an increase of 4.4% and a drop of 24.5% from end-2015. By geographical distribution, the Asian region continued to occupy the largest share of Macao residents’ external portfolio investment, at 57.2%. The rest was mainly placed in the North Atlantic and Caribbean (13.8%), Europe (12.6%), North America (10.6%) and Oceania (5.2%). Investment in securities issued by Mainland Chinese entities, including those securities listed on non-Mainland exchanges, continued to assume the leading position, occupying 40.0% of local residents’ portfolio investment outside Macao. Its market value registered a decrease of 13.5% from end-2015 to MOP177.4 billion. The investment consisted of MOP53.5 billion in equity securities, MOP116.8 billion in long-term debt securities and MOP7.1 billion in short-term debt securities, occupying 31.7%, 45.2% and 44.0% of the respective total. Meanwhile, the share of investment in securities issued by Hong Kong entities also fell from 13.4% at end-2015 to 12.9%, with the corresponding market value decreasing by 2.6% to MOP57.4 billion, of which equity securities and long-term debt securities amounted to MOP36.4 billion and MOP18.0 billion respectively. Macao residents’ portfolio investment in the North Atlantic and Caribbean continued to increase. The market value of investment in this region rose by 14.9% from end-2015 to MOP61.4 billion, with its share in the total investment abroad rising from 12.2% to 13.8%. In particular, the market value of portfolio investment in the British Virgin Islands swelled by 51.4% from end-2015 to MOP27.4 billion. The share of investment in European securities rose by 2.0 percentage points from end-2015 to 12.6%, and the corresponding market value grew by 20.1% to MOP55.7 billion. Among European countries, the United Kingdom, Luxembourg, the Netherlands and France represented larger portions with market values of MOP11.8 billion, MOP11.1 billion, MOP7.8 billion and MOP7.1 billion respectively. The bulk of investment in North America was placed in the United States. The market value of Macao residents’ investment in US securities rose by 9.6% from end-2015 to MOP43.6 billion, pushing up its share from 9.1% to 9.8%. Of which, the investment in mutual funds and investment trust units grew by 4.2% to MOP10.1 billion, representing the largest share in the corresponding category. At end-June 2016, Macao residents’ investment in securities issued by Australian entities increased by 56.1% from six months ago to MOP22.0 billion at market value, lifting the share of portfolio investment in Oceania from 3.2% to 5.2%. The compilation of Coordinated Portfolio Investment Survey (CPIS), jointly conducted by the Monetary Authority of Macao (AMCM) and the Statistics and Census Service (DSEC), follows the methodology advocated by the International Monetary Fund.