Sumary of Billions wiped from Macau casino stocks as city eyes gambling review:
- Macau casino operators saw billions wiped off their value Wednesday as their shares collapsed after officials in the world’s biggest gambling city unveiled plans for a crackdown that would tighten their grip on the already beleaguered industry.
- Hong Kong-listed operators Sands China and Wynn Macau both plunged around 30 percent;
- SJM Holdings and MGM China lost 25 percent while Melco and Galaxy Entertainment both shed around 20 percent.
- Bloomberg News estimated the combined losses for the six big operators amounted to some $14 billion.
- The sell-off came after the Macau government announced a 45-day public consultation that included a proposal for direct supervision over the gambling industry, which has faced increasing scrutiny from authorities in recent years.
- Officials are looking to put government representatives on licensed operators’ boards to oversee their operations, and to criminalise underground banking in the industry.
- The move comes as the government in mainland China embarks on a crackdown on a wide range of industries — including tech and private education firms — as it looks to tighten its grip on the world’s number two economy.
- “The casino issues are a continuation of what’s been a pretty big crackdown,” said Jason Ader, of New York-based investment manager SpringOwl Asset Management.