The Coordinated Portfolio Investment Survey (CPIS), jointly conducted by the Monetary Authority of Macao (AMCM) and the Statistics and Census Service (DSEC), is aimed at collecting information on Macao residents' investment in securities issued by unrelated non-residents, in terms of market value and geographical distribution. The results for the reference year 2012 are summarised as follows: On 31 December 2012, 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 a record-high of MOP261.8 billion at current market value, 54.8% up from a revised value of MOP169.1 billion at end-2011. In accordance with the Fiscal Reserve Act that came into force on 1 January 2012, the retained surplus of the Government was carved out from the foreign exchange reserves for establishing the MSAR's Fiscal Reserve. As a significant portion of the Fiscal Reserve was invested in debt securities issued by non-resident entities, the inclusion of the newly established Fiscal Reserve in the CPIS accounted for 86.4% and 58.8% of the annual increases in Macao residents' investment in long-term debt securities and total portfolio investment abroad respectively at end-2012. Among the total portfolio investment abroad of Macao residents, equity securities, long-term debt securities and short-term debt securities were valued at MOP133.0 billion, MOP117.5 billion and MOP11.3 billion respectively. In comparison with the previous year, investment in equity securities, of which mutual funds and investment trust units accounted for MOP19.9 billion, rose by 24.2%. Investment in long-term debt securities jumped by 116.5% while short-term debt securities also soared by 44.9%. In terms of geographical distribution, Mainland China assumed the leading position, occupying 35.4% of the total market value of local residents' portfolio investment outside Macao. The rest was mainly invested in Hong Kong, the Cayman Islands, the United States, Luxembourg, the United Kingdom, the Netherlands and Bermuda. Investment in securities issued by entities in Mainland China, including those securities listed on non-Mainland exchanges, amounted to MOP92.7 billion, a marked increase of 160.9% or MOP57.1 billion from end-2011. It consisted of MOP24.6 billion in equity securities, MOP59.4 billion in long-term debt securities and MOP8.6 billion in short-term debt securities, constituting 18.5%, 50.5% and 76.5% of the respective total. The share of investment in securities issued by entities in Hong Kong fell from 37.8% at end-2011 to 32.5%. Nevertheless, the corresponding market value increased by 32.9% to MOP85.1 billion, of which investment in equity securities and long-term debt securities rose markedly to MOP73.8 billion and MOP9.6 billion respectively. The share of investment in European securities dropped by 2.5 percentage points from a year earlier to 14.3% but the corresponding market value surged by 31.8% to MOP37.3 billion. Among the European countries, Luxembourg took the largest share with a total market value of MOP8.5 billion at end-2012, a year-on-year increase of 26.5%. On the other hand, the market value of Macao residents' portfolio investment in the United Kingdom stood at MOP8.3 billion at end-2012, sliding 7.1% from a year earlier. Portugal and Spain also saw their market value drop by 17.0% and 22.4% respectively. The share of US securities held by Macao residents slid from 6.2% at end-2011 to 3.5% while the corresponding market value plunged by 13.4% to MOP9.1 billion. The investment in long-term US debt securities dropped from MOP8.0 billion at end-2011 to MOP6.6 billion, which was still the third largest in the respective category. Investment in securities issued by Australian entities fell slightly by 0.6% from a year earlier, bringing the share of Oceanian securities in the total portfolio investment down from 3.0% a year earlier to 1.9% at end-2012.
