Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wynn, Las Vegas Sands Tumble on China’s Casino Crackdown

Stock MarketsSep 15, 2021 10:09AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Wynn, Las Vegas Sands Tumble on China’s Casino Crackdown

(Bloomberg) -- U.S. casino firms with exposure to Macau tumbled on Wednesday, extending a slump that started in the prior session after officials in the Asian gaming hub said they would tighten restrictions on operators.

Wynn Resorts (NASDAQ:WYNN) Ltd. fell as much as 10.5% after an 11% decline on Tuesday. That is the biggest two-day drop for the stock since March 2020. Las Vegas Sands (NYSE:LVS) Corp. dropped as much as 6.2%. Melco Resorts & Entertainment (NASDAQ:MLCO) Ltd. slumped 11%, while MGM Resorts (NYSE:MGM) International fell as much as 3.9%. 

Wednesday’s selloff started in Asia, where Macau’s top gaming stocks listed in Hong Kong lost a record $18.4 billion in combined market. Officials said changes to casino regulations would include appointing government representatives to “supervise” companies in the world’s biggest gaming hub.

“It’s another concerning action of increasing regulation aimed at some of the higher growth parts of the economy,” said Greg Taylor, chief investment officer at Purpose Investments. “It will probably make investors even more hesitant to expand investments in China.”

A Bloomberg Intelligence index tracking big Asia peers fell 23% earlier.  Officials in the enclave -- the only place in China where gambling is legal -- announced that they would begin a 45-day public consultation period to discuss legal revisions. 

“Another round of regulatory scrutiny in China is punishing the gambling capital of the world, with the repercussions being felt globally,” said “Another round of regulatory scrutiny in China is punishing the gambling capital of the world, with the repercussions being felt globally,” said Edward Moya, senior market analyst at Oanda Corp. “Foreign investors are growing frustrated with all the Chinese crackdowns and uncertainty as to how much further officials will go.”

Selloff spreads

The latest clampdown is also hurting American depository receipts of Chinese firms. The Nasdaq Golden Dragon China Index fell for a sixth day, dropping as much as 2.1% on Wednesday.

Shares of e-commerce companies also slid after China reported weaker-than-expected retail sales figures for August. Tencent Holdings (OTC:TCEHY) Ltd., Alibaba (NYSE:BABA) Group Holdings Ltd. and JD (NASDAQ:JD).com Inc. all fell by more than 2.6% each, extending losses to a third straight session. 

Meanwhile, ADRs for Yum China Holdings (NYSE:YUMC), Inc. dropped as much as 6% after the restaurant operator warned that its third-quarter profits could fall by up to 60% as a result of the latest Covid-19 outbreak in China.

(Updates share price moves and adds more details throughout.)

©2021 Bloomberg L.P.

 

Wynn, Las Vegas Sands Tumble on China’s Casino Crackdown
 

Related Articles

Tech slide, China woes weigh on European stocks
Tech slide, China woes weigh on European stocks By Reuters - Sep 28, 2021

(Reuters) - European stocks fell on Tuesday, as a surge in government bond yields pressured high-growth technology shares, with fresh signs of a slowdown in China's economy...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email