Investors folded on Macau casino stocks after Suncity Group, the region’s biggest VIP junket company, reportedly warned its employees to take additional caution when moving money to your Chinese enclave where gaming is permitted.
Billionaire Steve Wynn had been one of the casino magnates whom lost money on Monday, as Macau casino stocks dipped on continued uncertainty about the future of VIP junket operators. (Image: Vincent Yu/Associated Press)
Wynn Macau, traded on the Hong Kong Stock Exchange, lost nearly five per cent of its share cost in 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 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 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 previous Portuguese territory that is today a tax haven where casinos routinely focus on the Asian elite.
‚Investors are worried that the Suncity warning could preclude another crackdown on the industry,‘ Barron’s columnist Daniel Shane wrote.
Suncity Group warned employees recently to just take extra precautions whenever money that is moving and from M Continue reading