Macau's financial reserve investment income in 2023 was MOP 28.98 billion, with an annual return rate of 5.2%.

On February 28, the Monetary Authority of Macau announced that in 2023, under prudent and flexible investment management, the financial reserves of the Macau SAR recorded investment income of 28.98 billion Macau patacas for the year, with an annual return rate of 5.2%. By the end of the year, the capital amount of Macau's financial reserves was 580.47 billion Macau patacas, with basic reserves and excess reserves of 152.06 billion and 42.81 billion Macau patacas, respectively. The Monetary Authority of Macau believes that the global financial markets are complex and volatile. At the beginning of 2023, as pandemic control measures were relaxed and economies were recovering, major central banks tightened monetary policy to curb inflation, leading to further increases in interest rates. Some banks in Europe and the United States experienced liquidity issues, causing temporary pressures on the market. In the second half of the year, although global inflation levels gradually peaked and declined, some central banks still leaned towards maintaining higher policy interest rates. Combined with unresolved geopolitical conflicts, this cast a shadow over global financial markets. Under the influence of various risk factors, financial asset prices exhibited significant volatility. In the complex and changing market environment, Macau's financial reserves deployed investment strategies prudently, controlled risks strictly, continued to allocate a significant proportion to money market instruments and debt securities, and moderately adjusted the composition of listed stocks to achieve capital preservation and appreciation. In terms of equity assets, global stock markets had mixed performance. The financial reserves proactively adjusted the allocation of various stock sectors to reduce risks, while continuously optimizing the stock portfolio structure managed by external asset management companies. Overall, equity investments yielded positive returns for the year. Regarding bond investments, considering the inverted yield curve in European and American markets with short-term interest rates at relatively high levels, the financial reserves took the opportunity to increase capital to the bond portfolio during the year. They actively allocated the proportions of various types of bonds, enhanced the allocation of high-quality and high-rated bonds, and locked in the expected returns of relevant markets. This portfolio also yielded positive returns last year. The allocation in the money market deposits maintained a high proportion, providing significant interest income for financial reserves and ensuring sufficient liquidity and risk cushioning. In terms of foreign exchange, due to the relatively stable exchange rate between the US dollar and the Macau pataca, and effective risk management through forward contracts, foreign exchange risks, including the Renminbi, were mostly controlled. Foreign exchange revaluation and hedging operations for the financial reserves recorded gains during the year. The Monetary Authority of Macau stated that prudent management aims to preserve and appreciate capital. As we enter 2024, the growth of major economies remains weak, the geopolitical environment has not improved, and the pace of interest rate cuts by major central banks may deviate significantly from market expectations. It is expected that such uncertainties will continue to affect asset prices, posing challenges for the investment management of the financial reserves this year. Facing a highly uncertain financial market environment, Macau's financial reserves will adhere to a "safe, effective, and prudent" investment strategy, focusing on controlling downside risks, and prudently increasing allocation to stable return high-quality assets to achieve the medium to long-term goal of preserving and appreciating assets for the SAR reserves.