Investors folded on Macau casino stocks after Suncity Group, the region's biggest VIP junket business, reportedly warned its employees to take additional care when moving money to your Chinese enclave where gaming is permitted.
Billionaire Steve Wynn was one of the casino magnates whom destroyed money on Monday, as Macau casino stocks dipped on continued uncertainty about the future of VIP junket operators. (Image: Vincent Yu/Associated Press)
Wynn Macau, traded on the Hong Kong Stock Exchange, lost nearly five per cent of its share cost regarding the news. Galaxy Entertainment was down more than three percent, and MGM China, Sands China, and SJM Holdings all saw their valuations dip by at least two %.
According to Barron's, a newspaper that is financial investors are fleeing on issues that China's anti-corruption campaign is quickly to target VIP junket operations, for years a crucial part of drawing high-stakes players to various Chinese casinos. President Xi Jinping has been trying to stop the movement of money from the mainland to Macau, a former Portuguese territory that is today a tax haven where casinos routinely focus on the Asian elite.
'Investors are involved that the Suncity warning could preclude another crackdown on the industry,' Barron's columnist Daniel Shane published.
Suncity Group warned workers recently to take extra precautions whenever money that is moving and from Mac