There is definitely no place in Asia and even the world that is more glitzy, over-the-top & catering to every debaunchery that you can think of except in Macau. Casinos raked in the money over the last few years especially when the gambling addicted mainland Chinese were unleashed onto the gaming tables like pent up addicts. But of course a lot & how much of that money flow onto the gaming tables is anybody’s guess on the percentage which came from money laundering of ill-gotten gains in China. These sums were brought into Macau that is widely speculated through various means as discussed here http://www.businessinsider.com/how-people-use-macau-to-launder-money-2013-11?IR=T&.
SJM (800 HK), Galaxy (27 HK), Wynn Macau (27 HK), Melco (200 HK), Sands China (1928 HK) & MGM China (2282 HK) that are the listed gaming stocks of the casino operators soared in the last 2 years. However, with the anti-corruption crackdown in China initiated with a renewed vigour since late 2013, the gaming stocks reached a top in January 2014 & have fallen about -26% since according to the chart above; showing the performance of a composite basket of gaming stocks.
With no let-up in China President Xi jinping drive to stamp out financial sleaze by punishing “tigers and flies” – corrupt officials at all levels of the ruling Communist party of China, prospects do not look bright still. http://www.ft.com/intl/cms/s/0/0bf0de6c-d6a2-11e3-907c-00144feabdc0.html#axzz312j7F7nE.
Asianmacro is going short on Macau gaming stocks using the composite basket as reference at 67 to 70 level & targeting a further -30% drop to 46-50 level.
Let’s roll the dice indeed!
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