Investors folded on Macau casino stocks after Suncity Group, the spot’s VIP junket company that is biggest, reportedly warned its employees to take additional care when moving money to the 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, lost almost five % of its share cost on 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 crucial part 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 previous Portuguese territory that is today a tax haven where casinos regularly 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 just take extra precautions when moving money to and from Macau gambl