Investors folded on Macau casino stocks after Suncity Group, the spot’s VIP junket company that is biggest, reportedly warned its workers to take additional care when moving money to the Chinese enclave where video gaming is permitted.
Billionaire Steve Wynn ended up being one of many casino magnates who lost money on Monday, as Macau casino stocks dipped on continued uncertainty about the continuing future of VIP junket operators. (Image: Vincent Yu/Associated Press)
Wynn Macau, traded on the Hong Kong Stock Exchange, destroyed almost five per cent of its share cost regarding the news. Galaxy Entertainment was down more than three percent, and MGM China, Sands Asia, and SJM Holdings all saw their valuations dip by at least two per cent.
According to Barron’s, a financial newspaper, investors are fleeing on concerns that China’s anti-corruption campaign is quickly to target VIP junket operations, for decades a vital part of drawing high-stakes players to various Chinese casinos. President Xi Jinping has been trying to stop the movement of cash from the mainland to Macau, a previous Portuguese territory that is today a tax haven where casinos routinely appeal to the Asian elite.
‘Investors are concerned that the Suncity warning could preclude another crackdown on the industry,’ Barron’s columnist Daniel Shane had written.
Suncity Group warned employees recently to take extra precautions whene Continue reading