Local investment in external securities grows

Local residents were holding MOP438.8 billion-worth (US$54.9 billion) of investment in securities issued by unrelated non-residents as at the end of last year, which represents a year-on-year increase of 10 per cent, according to a co-ordinated portfolio investment survey released yesterday by the Monetary Authority of Macau (AMCM).
The authority noted that the amount includes investment in securities held by local individuals, the government and other legal entities but excludes the city’s foreign exchange reserves.
Analysed by instruments of portfolio investment, MOP247.3 billion of the total investment were long-term debt securities as at last year-end, which jumped 8 per cent compared to the value for 2014. Meanwhile, investment in short-term debt securities surged 40.9 per cent year-on-year to MOP21.5 billion.
Investment in equity securities also registered a jump of 10 per cent year-on-year to MOP170.1 billion. Of the total, mutual funds and investment trust units amounted to MOP41.8 billion, according to AMCM.
Most issued by Mainland Chinese entities in terms of geographical distribution, most of the external portfolio investments held by local residents were issued by the Asian region, accounting for 63.5 per cent of the total, followed by the North Atlantic and Caribbean, Europe and North America, which accounted for 12.2 per cent, 10.5 per cent and 10 per cent of the total, respectively.
In particular, investment in securities issued by Mainland Chinese entities, including those listed on non-Mainland exchanges, accounted for 46.7 per cent of the total external portfolio investments held by local residents, amounting to MOP205.1 billion in market value, representing a year-on-year growth of 6.4 per cent.
However, the city’s investment in securities issued by Hong Kong entities registered a year-on-year fall of 20.8 per cent in market value to MOP57.9 billion, accounting for 13.2 per cent of the total.
On the other hand, local residents’ portfolio investment in the North Atlantic and Caribbean increased by nearly 30 per cent year-on-year in market value to MOP53.4 billion as at the end of the year. In particular, the market value of portfolio investment in the British Virgin Islands grew 86.8 per cent year-on-year to MOP18.1 billion.
Meanwhile, the market value of local investment in European securities jumped 9.4 per cent year-on-year to MOP46.2 billion, whilst that of US securities surged 81.4 per cent year-on-year to MOP41 billion, in addition to a 55.8 per cent year-on-year growth in the market value of investment in Australian securities to MOP14.1 billion as at the end of 2015.