Mainland Chinese Stocks Suffered Losses on Thursday
Stocks in Asia-Pacific sustained losses on Thursday, with Chinese stocks leading losses regionally.
In Japan, the Nikkei 225 dropped 0.62% to finish its trading day at 30,323.34. The Topix index declined 0.3% to close at 2,090.16.
South Korea’s Kospi fell 0.74% to 3,130.09. In Australia, the S&P/ASX 200 added 0.58% to end its trading day at 7,460.20.
The country’s unemployment rate fell to 4.5% on a seasonally adjusted basis in August. The National Bureau of Statistics attributed the drop to a “large fall in participation during the recent lockdowns” rather than strengthening labor market conditions.
Stocks and Macao
The Shanghai composite fell 1.34% to close at 3,607.09. The Shenzhen component dropped 1.954% to 14,258.13.
In Hong Kong, the Hang Seng index fell 1.46% to end its trading day at 24,667.85, with casino stocks listed in Hong Kong seeing a straight day of sharp losses.
Hong Kong-listed shares of Wynn Macau declined 4.69%, Sands China fell 7.96% and Melco International Development dropped 0.76%. On Wednesday, Macao began a 45-day gaming consultation to measure consensus ahead of a closely watched rebidding of its casinos. Shares of casino operators fell on Wednesday and Thursday due to the situation.
Macao’s government will continue to promote the “sustained and healthy development” of the local gambling industry according to Lei Wai Nong. He is the current secretary for economy and finance in the world’s biggest gambling hub.
Sands China, Wynn Macau, SJM Holdings, MGM China, and others are required to rebid for their casino licenses. Their licenses will expire in June 2022.
On Tuesday, Lei Wai Nong detailed nine areas for the consultation, including increased regulation, etc. In recent years, a Chinese special administrative region massively tightened scrutiny of casinos. Authorities in Macao cracked down on illicit capital flows from Mainland China. They also targeted underground lending and illegal cash transfers.
China also intensified the war on cross-border flows of funds for gambling. The government’s decision affected the financial channels of Macao’s junket operators as well as their VIP casino customers.
In June 2020, Macao more than doubled the number of gaming inspectors. It also restructured several departments to ramp up supervision.
The lengthy process of consultation comes as Macao struggled with a dearth of travelers because of the coronavirus pandemic. The world’s biggest gambling hub is trying to rejuvenate its gaming industry, but gambling revenues remain at less than half of 2019 monthly hauls.
