New | Hong Kong casino stocks jump on relaxed visa rules
Macau casinos finally won a round on the Hong Kong stock exchange Thursday morning, rebounding energetically on the hope of increased business after a relaxation in visa rules for mainland Chinese tourists.
MGM China led the charge, gaining 18.45 per cent to HK$15.02, followed by Sands China which finished 16.86 per cent up at HK$30.50 by midsession.
Wynn Macau, Melco International and Galaxy Entertainment gained 15.61, 14.23 and 13.59 per cent respectively. SJM continued to lag behind, improving by 8.81 per cent.
The rally came after the Macau government extended the duration of a transit visa for mainland Chinese visitors from five days to seven as of July 1.
All six casino operators have seen their share price slashed by around half over the past 12 months as China’s slowing economy and graft crackdown hit the sector hard.
According to Macau’s Gaming Inspection and Coordination Bureau, casino revenues were down 36 per cent down in June, matching the average monthly drop this year.
Meanwhile, Dalian Wanda Commercial Properties traded busily with turnover of HK$3.2 billion, shedding 5.29 per cent to HK$59.05, on news that a group company had pledged 1.82 per cent of the parent’s issued share capital as security for a bank loan.
And Sheng Yuan Holdings plummeted by almost 23 percentage points to 37.5 HK cents after announcing that a bonds subscription agreement worth HK$200 million had lapsed. For now, the stock remains above its pre-deal, April 1 level of 19.5 HK cents.
