Investors folded on Macau casino stocks after Suncity Group, the location’s VIP junket company that is biggest, reportedly warned its employees to take extra caution when moving money to your Chinese enclave where gaming is permitted.
Billionaire Steve Wynn was one of the casino magnates who destroyed money on Monday, as Macau casino stocks dipped on continued uncertainty about the ongoing future of VIP junket operators. (Image: Vincent Yu/Associated Press)
Wynn Macau, traded on the Hong Kong Stock Exchange, destroyed nearly five % of its share cost in 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 %.
According to Barron’s, a financial newspaper, investors are fleeing on issues that China’s anti-corruption campaign is quickly to target VIP junket operations, for a long time a vital section of drawing high-stakes players to various Chinese casinos. President Xi Jinping has been trying to stop the flow of money from the mainland to Macau, a former Portuguese territory that is today a tax haven where casinos routinely cater to the Asian elite.
‘Investors are concerned that the Suncity warning could preclude another crackdown on the industry,’ Barron’s columnist Daniel Shane wrote.
Suncity Group warned workers recently to take extra precautions whenever money that is moving and from Macau Continue reading