Casino Stocks Surge as China Eases Macau Border Rules for People
With China relieving coronavirus-related impositions between Macau and the neighboring coastal province of Guangdong, the shared of casino operators in Macau are anticipating a rise in the demand of their shares in future.
The border with Mainland China shut stopped public access to casinos ever since the pandemic crisis aggravated in the region in March.
On Monday, the regulatory authorities in Guangdong region stated that the visitors coming from the world’s most popular gambling hub from July 15 will not be required to lock themselves in the 14-day quarantine stay. The visitors need to be tested negative for coronavirus in the previous seven days span and are required to have green health codes for Macau and Guangdong regions.
According to the recent reports, the globally acclaimed casino establishment listed in Hong Kong, Wynn Macau witnessed a rise of 7% in trade in its late morning operations on Tuesday. On the other hand, the trade operations of MGM China soared by a whopping 5% bar. However, the stocks of the two popular entities were at a low of 25% and 21% respectively in 2020 till date.
While some analysts opined a rise in the share values of casinos, others kept a skeptic view about the recovery situations amid the crisis.
DS Kim stated, an analyst at JP Morgan in Hong Kong,
Vitaly Umansky quoted, an analyst at Sanford C. Bernstein,
Where Guangdong, which witnesses nearly 50% of Chinese visitors into Macau gave a relief to the visitors, the close city of Hong Kong imposed new stringent controls to curb the coronavirus pandemic aggravation in its jurisdictional domain. Hong Kong has been a victim of rising number of corona victims whereas Macau has enjoyed a high recovery rate. The city did not record any new case in its natives for more than 100 continuous days and all its 45 COVID-19 sufferers were released from the hospital with negative reports.