Macau’s casino operators saw revenue gains after the Chinese government’s announcement to revitalize the economy with a major stimulus package.
According to Macau news media, the announcement saw shares of the six casino concessionaires rise from 2.32% to 12.77% by the end of trading.
The measures announced included increased funding, interest rate cuts and a reduction in the banking system’s reserve ratio. It also featured cuts to the benchmark interest rate and reductions on existing mortgage rates, plus providing liquidity to brokers and insurance companies.
The aim of the measures was to boost confidence in the economy after the recent months’ slowdown.
Following the announcement, Chinese stocks and bonds, especially those with Asian markets, hit a two-and-a-half-year high. The Chinese Yuan also reached a 16-month high against the US dollar.
Brokerage Seaport Research Partners noted the new monetary policies “are likely to enhance sentiment surrounding both China and Macau.”
Analyst Vitaly Umansky said that while the immediate effects on Macau revenue may be limited, sustained stimulus could lead to improvements in the Chinese economy over the medium term.
Umansky also added that “a stronger recovery in gross gaming revenue (GGR) would be crucial” for Macau’s market in 2025, driven by improving economic conditions and consumer sentiment.
Recent updates from Macau saw its Monetary Authority announcing plans for Macau’s digital currency, following Hong Kong’s second-phase test for its e-HKD Pilot Programme.
