Macau’s casino stocks tumble in US$17 billion wipeout on plans to overhaul the world’s gambling hub
- An index that tracks six gambling stocks in Hong Kong and New York tumbled by 23 per cent, bringing its plunge this year to 45 per cent
- Sands China led the carnage, tumbling by 33 per cent while Wynn Macau, MGM China and Galaxy Entertainment fell by at least 20 per cent each
Macau’s casino stocks plunged in the Hong Kong market, losing as much as US$17 billion in market value in a single day after authorities in the world’s gambling hub proposed regulatory revisions to tighten their oversight of the industry.
An index that tracks the performance of six gaming stocks trading in Hong Kong and in New York tumbled by 23 per cent. The gauge has already declined by 45 per cent this year, as the outbreak of Covid-19 cases deterred gamblers and tourists to Macau.
Macau’s gambling revenue dropped 47 per cent in August from a month earlier. Guotai Junan Securities remains cautious on the sector, saying that the industry is unlikely to recover to the pre-pandemic level any time soon.
The massive sell-off came after the Macau government announced a public consultation involving five hearings sessions over the next 45 days to solicit public feedback on how to overhaul and manage an industry that contributes about 80 per cent to the territory’s annual tax receipts.