Macau Cash Declaration Rule a ‘Non-Event,’ JPMorgan Says
(Bloomberg) -- Macau potentially adopting cash declaration rule is probably a move toward meeting international standards against money laundering, and probably not related to China’s capital controls, JPMorgan analyst DS Kim wrote in note earlier.
- Believe this isn’t a regulatory tightening for gaming industry or Chinese capitol outflow into Macau; don’t see how this would “meaningfully” affect gaming demand
- “Knee-jerk” reaction is buying opportunity; still bullish after recent rally with Wynn Macau, Galaxy top picks
DEUTSCHE BANK (Karen Tang)
- Recent Chinese capital outflow rules appear to be “strong signals” from government, junket agents; VIP players may be more “careful”; Wynn Macau, Galaxy more at risk given higher VIP exposures; Sands China likely least impacted
- Curbs may “dampen” near-term VIP recovery in Macau; curbs unlikely to directly hurt ability of junket operators to raise capital from rich Chinese or affect their daily operations
- WYNN down as much as 4%, most intraday since Nov. 3; LVS down as much as 2.1%, most since Nov. 16
- NOTE: Earlier, Macau May Require Declaration of Cash Holdings at Borders: TDM
- Nov. 30, PBOC Said to Tighten Rules for Onshore Cos Lending Yuan Offshore; Nov. 30, China Said to Add Curbs on Yuan Outflows, Outbound Investment
- Nov. 28, SAFE Said to Pause Outbound Deals With $50m+ Remaining FX Quota
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
Tickers LVS US (Las Vegas Sands Corp)
1128 HK (Wynn Macau Ltd)
27 HK (Galaxy Entertainment Group Ltd)
MGM US (MGM Resorts International)
880 HK (SJM Holdings Ltd)
People Ds Kim (JPMorgan Chase Bank NA)
Karen Tang (Deutsche Bank AG)
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