Investors folded on Macau casino stocks after Suncity Group, the spot’s biggest VIP junket company, reportedly warned its employees to take additional care when moving money to your Chinese enclave where video gaming is permitted.
Billionaire Steve Wynn ended up being one of the casino magnates whom destroyed money on Monday, as Macau casino stocks dipped on continued uncertainty about the continuing future of VIP junket operators. (Image: Vincent Yu/Associated Press)
Wynn Macau, traded on the Hong Kong Stock Exchange, destroyed nearly five per cent 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 percent.
According to Barron’s, a newspaper that is financial investors are fleeing on concerns that China’s anti-corruption campaign is quickly to target VIP junket operations, for a long time a critical element of drawing high-stakes players to various Chinese casinos. President Xi Jinping has been trying to stop the flow of cash from the mainland to Macau, a former 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 employees recently to simply take extra precautions whe Continue reading “Macau Casino Stocks Plunge with VIPJunket Ops in Beijing’s Anti-Corruption Crosshairs”