Macau Casino Stocks Rise Amid China’s Economic Stimulus Measures
Content
Shares of Macau casino operators rose by 2.4–6.65% following China's economic stimulus measures. Casino revenues are expected to grow by 28% in October 2024.
Macau Casino Stocks Rise Amid China’s Stimulus Measures
Shares of Macau's six largest casino operators listed on the Hong Kong Stock Exchange rose by 2.4–6.65% as of September 24, 2024. The growth followed the Chinese government's announcement of economic stimulus measures.
Key Measures:
Reduction in base interest rates and mortgage rates.
Provision of additional liquidity to brokers and insurance companies.
Strengthening of the yuan, reaching a 16-month high against the dollar.
Expert Opinion:
Vitaly Umansky, an analyst at Brokerage Seaport Research Partners, stated:
- The economic stimulus measures may not have an immediate impact on Macau casino revenues but will create conditions for economic progress in the medium term.
- The primary growth driver is the increase in gross gaming revenue (GGR), fueled by improved consumer sentiment and spending.
Future Projections:
October 2024: Expected gross casino revenue is projected at 21.5 billion patacas (₽250.4 billion), 28% higher than in September and 10.3% more than a year earlier.
Premium clients remain a key driver of financial growth, while increased spending by the mass market will significantly contribute to revenue growth in 2025.
Conclusion:
China's stimulus measures bolster the financial prospects of Macau casino operators, enhancing investor confidence and creating a favorable environment for economic and gaming industry growth.