Red or Black?

2 July 2015 By Peter Thal Larsen Follow @Peter_TL

Shares in the enclave’s battered casinos rallied after June gambling revenues declined less than expected and the government loosened visa rules. Much of the bad news is priced in. Yet China’s ongoing graft crackdown precludes a speedy rebound. And valuations are still stretched.

This content is for Subscribers only

To access full Breakingviews.com content you must be a subscriber. Please use the following link to request a trial.

Context News

Shares in Hong Kong-listed casino operators surged on July 2, the day after Macau announced that gambling revenue in the conclave had fallen to a five-year low in June.

Revenue in the world’s biggest gambling centre fell 36 percent to 17.4 billion patacas ($2.18 billion) according to monthly data released by the Macau government. The decline was slightly less severe than the 39-40 percent predicted by analysts.

Also on July 1, the Macau government relaxed visa restrictions for visitors from mainland China. Under the new rules, mainland passport holders will be allowed to stay in the territory for up to seven days if they use Macau as a transit to other destinations. The rule will only be applied if travellers did not enter Macau in the previous 30 days.

Previously, travellers in transit were only allowed to stay for five days, and only if they had not visited for the previous 60 days.

Shares in MGM China rose 18.5 percent by midday in Hong Kong. Sands China was up 17 percent, while Wynn Macau rose 16 percent and Galaxy Entertainment was up 14 percent.

Email a friend

Please complete the form below.

Required fields *