[Photo; AI-GENERATED ILLUSTRATION]

The Monetary Authority of Macao (AMCM) has reported that the Macau SAR financial reserve recorded investment income of MOP42.92 billion in 2025, yielding an annual return of 6.9%, setting a new record.

According to the AMCM, at the end of last year, the financial reserve’s capital amounted to MOP666.74 billion, of which the basic reserve was MOP167.29 billion and the extraordinary reserve was MOP499.45 billion.

The authority said the 2025 result stemmed from a diversified allocation of investment funds aimed at stable and sustainable development.

In the first half of 2025, tariff measures altered the global trade landscape, and geopolitical tensions intensified, leading to significant changes in international financial markets, with major equity and bond markets adjusting accordingly.

Subsequently, with progress in trade negotiations and the gradual reduction of tariffs, along with more accommodative monetary policies in major economies, expansionary fiscal policies supporting growth, and continued momentum in the artificial intelligence sector, risk asset prices rose. Throughout the year, equity and bond markets generally remained resilient.

In this complex and volatile market environment, the financial reserve investment portfolio was dynamically adjusted across asset classes, optimizing bond and equity structures and introducing high-quality assets to maintain liquidity and security while pursuing returns through diversified and balanced allocation, AMCM said.

Cautious approach for 2026

The AMCM said major global economies are expected to continue implementing policies to support economic growth in 2026, creating both opportunities and challenges for investments.

Monetary policy direction, international trade relations, and geopolitical developments will remain key factors influencing the financial reserve’s asset allocation strategy.

The authority said the financial reserve will continue following a “safe, effective, and stable” investment principle, balancing risk and return through prudent, flexible, diversified, and balanced asset allocation to preserve capital and enhance long-term asset value.