Sumary of UPDATE 5-Billions blown as Macau casino investors fold amid gambling review:
- Morgan downgrades all Macau casino stocksHONG KONG, Sept 15 (Reuters) – Shares of Macau casino operators plummeted as much as a third on Wednesday, losing about $18 billion in value, as the government kicked off a regulatory overhaul that could see its officials supervising companies in the world’s largest gambling hub.
- Some Hong Kong stock analysts wasted little time in downgrading their view of near-term prospects for casino operators in the Chinese special administrative region, who must all rebid for licences when current permits expire in June 2022.J.
- TIGHTER REGULATIONAt a news briefing on Tuesday, Lei detailed nine areas for the consultation, such as the number of licenses, better regulation and employee welfare, as well as having government representatives to supervise daily casino operations.
- REUTERS/Jason LeeRead MoreThe government also plans to increase voting shares in gaming concessionaires for permanent residents of Macau, as well as more rules on transfer and distribution of profits to shareholders.
- The government has not singled out any U.S. players, but companies have moved to beef up the presence of Chinese or local executives as they position themselves more as Macau operators than foreign one.
- read more George Choi, a Citigroup analyst in Hong Kong, said while the public consultation document gave few details, the suggested changes benefit long-term sustainable growth, with “positive implications on the six casino operators”.