Macau-based casino operator MGM China Holdings Ltd will be removed from the MSCI Hong Kong Index. The announcement was made on Thursday by MSCI Inc, the entity that compiles the index.
No reason for the removal was provided. It was part of MSCI Inc’s semi-annual index review for its MSCI equity indexes.
The change will become effective as of the close of markets on November 26, said MSCI Inc. The firm is one of the world’s largest providers of financial market indices.
MGM China operates two casinos in Macau: MGM Macau on the peninsula and MGM Cotai in the Cotai district. The firm said last week its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the third quarter grew by 38.6 percent to about HKD1.55 billion (US$197.6 million) compared to the corresponding period last year.
The MSCI Hong Kong Index “is designed to measure the performance of the large and mid-cap segments of the Hong Kong market,” according to MSCI Inc. It currently features 47 constituents and reportedly covers approximately 85 percent of the free float-adjusted market capitalisation of the Hong Kong equity universe.
The index includes other Macau-based gaming operators, including Galaxy Entertainment Group Ltd, Sands China Ltd, Wynn Macau Ltd and SJM Holdings Ltd.
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Lei Wai Nong
Macau’s Secretary for Economy and Finance