Residents’ investments portfolio up 9.7% at the end of 2023

Statistics released by the Monetary Authority of Macao (AMCM) show that the investment accounts of Macau residents (including individuals, the government, and other legal entities but excluding Macau’s foreign exchange reserves) had recorded a total of MOP1,104.5 billion at current market value, a figure that represents a rise of 9.7% when compared year-on-year with the end-2022 and 3% up when compared with end-June 2023 (1H).

Among the 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 MOP335.3 billion, MOP693.8 billion and MOP75.5 billion respectively.

Compared with a year ago, the market values of equity securities and long-term debt securities increased by 4.4% and 16.5% whereas on the other hand, short-term debt securities decreased by 16.4%.

The Asian region continued to occupy the largest share of Macau residents’ external portfolio investment, at 46.4% with the remaining mainly placed in North America (19.6%), Europe (15.9%), the North Atlantic and Caribbean (14.4%) and Oceania (1.6%).

Investment in securities issued by mainland entities, including those securities listed on non-mainland exchanges, continued to assume the leading position, occupying 28.5% of local residents’ portfolio investments outside Macau. Its market value decreased by 3.7% from end-2022 to MOP314.6 billion.

The investment consisted of MOP98.2 billion in equity securities, MOP185.0 billion in long-term debt securities, and MOP31.4 billion in short-term debt securities, taking up 29.3%, 26.7%, and 41.7% of the respective total.

On the other hand, the share of investment in securities issued by Hong Kong entities increased from 10.7% to 10.8%; the corresponding market value increased by 10% to MOP118.9 billion, of which equity securities and long-term debt securities amounted to MOP37.6 billion and MOP57.9 billion respectively.

All investments in North America are placed in the United States with the market value of residents’ investments in US securities increasing by 26% from end-2022 to MOP187.6 billion while its share in total external portfolio investments rose from 14.8% to 17%.

Concurrently, investment in European securities rose by 1.9% to 15.9% and by 25.1% to MOP175.2 billion in market value from end-2022.

Of European countries, portfolio investments in Ireland, Luxembourg, and the UK took up larger portions, standing at MOP41.6 billion, MOP40.9 billion and MOP33.7 billion respectively.

The market value of residents’ portfolio investments in the North Atlantic and Caribbean increased by 0.5% from end-2022 to MOP158.9 billion whereas its share in total external securities investments reduced from 15.7% to 14.4%.

From this, the market value of portfolio investments in the British Virgin Islands rose by 2.1% to MOP79.1 billion.

Investments in Belt and Road Initiative countries (excluding China) also increased by 14.6% from end-2022 to MOP103.9 billion, equivalent to 9.4% of total external portfolio investments.

The market value of portfolio investments in Portuguese-speaking countries was MOP900.8 million, which was placed in securities issued by entities in Portugal and Brazil.

The compilation of the Coordinated Portfolio Investment Survey, jointly conducted by the AMCM and the Statistics and Census Service, follows the methodology advocated by the International Monetary Fund.