Casino stocks hit by visa worries

Casino stocks fell in Hong Kong yesterday after a newspaper report that Guangdong has extended the wait for Macau visas to a month. At present, it takes one to two weeks for residents of the province to get a Macau visa.

The Chinese-language Macau Daily News also said UnionPay had cut the maximum overseas spending limit by holders of its credit cards to one million yuan (HK$1.23 million), down from five to 10 million yuan. Many mainlanders use the cards to withdraw cash when they are abroad.

'Chinese visitors can go to Macau once every two months based on the regulations, but now, effectively, they can only come once every three months if you consider the extra application time,' Kenneth Fong, a JPMorgan analyst, said yesterday.

The Macau newspaper cited tourists as the source of the news, without giving their names. It could not be officially confirmed. BofA Merrill Lynch said it had contacted visa staff in Zhuhai, Guangzhou, Shenzhen, Foshan, Zhongshan, Fuzhou, Beijing and Shanghai, and 'based on their responses, we are not aware of any change in the visa application process or timing'.

Shares in Sands China slid 5.8 per cent to a more than five-month low, while Wynn Macau fell 2.8 per cent. The Hang Seng Index edged up 0.45 per cent from the previous day.

Macau gaming mogul Stanley Ho Hung-sun's SJM dropped 2 per cent, Melco Crown Entertainment lost 2.5 per cent, Galaxy Entertainment fell 5.7 per cent and MGM, 4.8 per cent.