Statement by Monetary Authority of Macao (AMCM)
In order to properly manage the budget balance and protect the payment capacity of public finances, the Government of the Macao Special Administrative Region (MSAR) enacted Law No. 8/2011 (Legal Regime of the Financial Reserve), which assigns to the Monetary Authority of Macao (AMCM) the responsibility for ensuring the investments and management of the Financial Reserve. In 2025, the Financial Reserve of the MSAR recorded an investment income of 42.92 billion patacas, with an annual return of 6.9 percent, reaching a new record.
By the end of last year, the Financial Reserve’s capital amounted to 666.74 billion patacas, of which the basic reserve represented 167.29 billion patacas and the extraordinary reserve amounted to 499.45 billion patacas.
Diversified allocation for stable and sustainable development
In the first half of 2025, tariff measures changed the landscape of global trade, and geopolitics became more complex, leading to significant changes in international financial markets, with major equity and bond markets experiencing adjustments. Subsequently, with progress in trade negotiations and the gradual reduction of tariffs, coupled with the adoption of relatively accommodative monetary policies in major economies, supported by expansionary fiscal policies for economic support, as well as ongoing dynamism in the artificial intelligence sector, the prices of risk assets recorded a recovery and gradual increase. Throughout the year, equity and bond markets generally demonstrated resilient performance.
In this context of a complex and volatile financial market, the Financial Reserve made dynamic adjustments in the allocation among various asset classes, adequately optimising the structure of bond and equity portfolios and introducing quality assets, with the aim of maintaining liquidity and security in the overall investment portfolio, as well as achieving satisfactory investment returns through a more diversified and balanced asset allocation.
Management of investments in reserves according to the principle of being “safe, effective, and stable”
Entering 2026, it is anticipated that major global economies will continue to resort to various measures and policies to stimulate economic growth, resulting in a coexistence of opportunities and challenges in the investment environment. The orientation of monetary policies by major central banks, international trade relations, and the evolution of the geopolitical situation will be important factors to consider in the asset allocation decisions of the Financial Reserve. The Financial Reserve will continue to strictly adhere to the investment principle of being “safe, effective, and stable,” balancing return and risk through prudent, flexible, diversified, and balanced asset allocation to achieve the medium- and long-term objective of capital preservation and asset appreciation of the reserve.
N.B. The AMCM statement released yesterday in Chinese and Portuguese has been translated into English by the Post.
