Macau | Investment in securities jumps until June

Macau (MNA) – Local individuals, government and other legal entities, excluding foreign exchange reserves, have invested MOP582.6 billion (US$72.4 billion) in securities issued by unrelated non-residents in the year to June 30, 2017, the Monetary Authority of Macao (AMCM) said on Monday.

The figure represents a 20.2 per cent increase in the first six months of 2017 and a 31.5 per cent increase year-on-year.

Mainland entities are the preferred destination for outbound investment in securities – even if they are not listed in Chinese exchanges – amounting to 42.5 per cent of the total.

Investment in securities issued by Hong Kong entities fell slightly to 12.6 per cent from 13.6 per cent. However, its market value rose 11.5 per cent to MOP73.4 billion.

In terms of region, Asia occupies 59.2 per cent of the total, followed by investment hub of North Atlantic and Caribbean zone (14.4 per cent). ‘The market value of investment in this region rose by 15.7 per cent from end-2016 to MOP84.1 billion,’ the information by AMCM revealed. Remarkably, the market value of portfolio investment in the British Virgin Islands grew by 22 per cent to MOP40 billion.

The investment in ‘Belt and Road’ countries represents just 3.3 per cent of the portfolio, increasing 9.1 per cent from end-2016 to MOP19 billion.

Equity securities (including mutual funds and investment trust units), long-term debt securities and short-term debt securities were valued at MOP210.9 billion, MOP361 billion and MOP10.8 billion, respectively, AMCM figures show.

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