Investors folded on Macau casino stocks after Suncity Group, the region’s VIP junket company that is biggest, reportedly warned its workers to take additional care when moving money to your Chinese enclave where gaming is permitted.
Billionaire Steve Wynn had been one of many casino magnates whom 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 almost five % of its share cost on the news. Galaxy Entertainment was down more than three percent, and MGM China, Sands China, and SJM Holdings all saw their valuations dip by at least two percent.
According to Barron’s, a financial newspaper, investors are fleeing on concerns that China’s anti-corruption campaign is soon to target VIP junket operations, for a long time a crucial section 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 former Portuguese territory that is today a tax haven where casinos regularly appeal to the Asian elite.
‘Investors are worried that the Suncity warning could preclude another crackdown on the industry,’ Barron’s columnist Daniel Shane published.
Suncity Group warned employees recently to simply take extra precautions when moving money Continue reading Macau Casino Stocks Plunge with VIPJunket Ops in Beijing’s Anti-Corruption Crosshairs