• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Quick U.S.-China trade peace to help Macau: Bernstein

Oct 05, 2018 Newsdesk Latest News, Macau, Top of the deck  


Quick U.S.-China trade peace to help Macau: Bernstein

A key factor in assessing the likely direction of the Macau casino sector is whether the trade dispute between the United States and China can be “quickly and agreeably resolved,” says an analysis issued on Thursday by brokerage Sanford C. Bernstein and Co LLC.

A topic addressed by the paper was what impact the tit-for-tat tariff on imports war might have on China’s economic growth, and Chinese consumer confidence.

Francis Lui Yiu Tung, deputy chairman of Macau casino operator Galaxy Entertainment Group Ltd, told GGRAsia on Wednesday that Chinese consumer concerns about the U.S.-China trade war “might have some impact” on casino gross gaming revenue growth rates in Macau during the current autumn season.

Sanford Bernstein hinted – in its Thursday memorandum on the macroeconomic issue – at a mercurial aspect to U.S. policy under President Donald Trump. A positive outcome might mean “the trade dispute with China – having turned as hot as the U.S. administration’s dispute with North Korea was at the start of the year or the dispute with Canada was over the summer – is quickly and agreeably resolved”.

The paper said that while the brokerage believed Macau gaming would continue to benefit from China’s gross domestic product growing annually by mid-single digits of percent, by expansion of domestic consumer spending power and growth in the number of middle-income Chinese able to afford to visit Macau, the possibility of  “a deterioration of China’s economic backdrop” was “one of the critical risk factors to our Macau view”.

The paper, including analysis from the brokerage’s Hong Kong-based analyst Vitaly Umansky, mentioned some company-specific downside risks to three stocks covered by the institution.

Sands China Ltd, a unit of U.S.-based Las Vegas Sands Corp, could see “greater disruption at Cotai Central than expected due to renovations.” That was a reference to revamp work likely to start late this year to turn the Sands Cotai Central resort into a facility themed as The Londoner.

MGM China Holdings Ltd might face some negative risk from “Pansy Ho [Chiu King]‘s potential disengagement from MGM China in the future (and/or potential sale of large block of stock),” said the brokerage. It was referring first to a daughter of former Macau monopolist Stanley Ho Hung Sun, who was instrumental in getting U.S.-based MGM Resorts International a Macau gaming licence. MGM Resorts currently controls a majority of MGM China’s stock.

Wynn Macau Ltd, a unit of U.S.-based Wynn Resorts Ltd, might face challenges in the event of “VIP play worse than our forecast [which] could disproportionately impact the company.” The Wynn brand is associated by a number of investment analysts with strength in VIP gambling and in so-called premium mass, involving high-stakes play for cash rather than via the credit issued to traditional VIPs.

JP Morgan Securities Asia Pacific Ltd analysts DS Kim and Sean Zhuang suggested in an October 1 memo – citing channel checks – that VIP GGR had declined by around 5 percent year-on-year in September, whereas mass-market play probably rose by circa 10 percent.


  • tweet
Related articles
  • LVS amends US$1.5bln loan facility, dividends restricted
    LVS amends US$1.5bln loan facility,...

    Feb 01, 2023  

  • Macau CNY mass GGR maybe 60pct plus of CNY 2019: JPM
    Macau CNY mass GGR maybe 60pct plus of...

    Jan 31, 2023  

More news
  • Macau early Feb average daily GGR higher than Jan: JPM
    Macau early Feb average daily GGR...

    Feb 06, 2023  

  • Macau tour trade returns at historic areas, resorts says govt
    Macau tour trade returns at historic...

    Feb 06, 2023  


Latest News

Macau early Feb average daily GGR higher than Jan: JPM

Macau early Feb average daily GGR higher than Jan: JPM

Feb 06, 2023  

Macau’s casino gross gaming revenue (GGR) for the first five days of February is estimated at MOP1.9 billion (US$235.1 million) – or MOP380 million per day – a level that suggests a “45...
Read More
Macau tour trade returns at historic areas, resorts says govt

Macau tour trade returns at historic areas, resorts says...

Feb 06, 2023  

Cambodia ops to Mar 31 for due tax on non-gaming: report

Cambodia ops to Mar 31 for due tax on non-gaming: report

Feb 06, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”The resumption [of mainland package tours] is definitely good news: recovering foot traffic for casinos [in Macau] is really important and their comeback will help with that”

Hoffman Ma Ho Man

Deputy chairman of Success Universe Group, promoter of casino-hotel Ponte 16



Most Popular

  • Return of tours good for mass floor traffic: observersReturn of tours good for mass floor traffic: observers February 3, 2023
  • Jaw-dropping wagers in Macau CNY survey: CitigroupJaw-dropping wagers in Macau CNY survey: Citigroup February 2, 2023
  • Galaxy Macau’s new arena to host K-pop group BlackpinkGalaxy Macau’s new arena to host K-pop group Blackpink January 9, 2023
  • Cyprus president says Melco CoD Mediterranean to aid nationCyprus president says Melco CoD Mediterranean to aid nation February 6, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us