Macau casino stocks soar as resumption of mainland China tourist visas promises to boost battered gaming revenues
- Sands China shoots up 10 per cent, while Galaxy, MGM China and Wynn Macau gain about 5 per cent each
- Zhuhai will be the first mainland Chinese city to be issued with tourist visas
Macau casino stocks soared on Tuesday on excitement that mainland China will begin reissuing tourist visas after the coronavirus left baccarat tables nearly vacant and slot machines untouched, causing a 90 per cent plunge in gaming revenue.
Sands China surged nearly 10 per cent – its most in 20 months, according to Bloomberg data.
Galaxy Entertainment closed with a 5.5 per cent gain, while MGM China, Wynn Macau and SJM Holdings each climbed about 5 per cent.
Neighbouring city Zhuhai will be the first mainland Chinese city to be issued with tourist visas beginning on Wednesday, the Macau government announced late on Monday, in what Jefferies called “a big step” in what is expected to be a phased-in return of the tourist and group visas.
Macau’s secretary for Social Affairs and Culture said the city is working with mainland authorities to resume the full visa programme, but warned the plan could be disrupted if virus transmissions return. The former Portuguese colony is the only place in China where casino gambling is permitted.
