Bursting stock bubble adds no fizz to Macau GGR

When the mainland Chinese government’s anti-graft campaign began to bite into Macau’s gaming revenue last year, many analysts suggested the big players had fled to safer ground in the then-booming Chinese stock market. But that bubble has now burst, with the Shanghai Composite Index seeing its worst daily fall in eight years in August, sending shockwaves through global bourses. If that boom is now well and truly over, is there any argument for a corresponding turnaround in Macau? A recent report from Macquarie Capital Securities didn’t contain much reason for optimism, stating most experts couldn’t say whether Macau’s Gross Gaming Revenue (GGR) would recover, plateau or continue to plummet. “Over the past two months, we met with over two dozen industry participants and nobody had clear visibility on where GGR would head a month out. Even for gaming operators themselves, visibility can be as low as just one week,” wrote analysts Kai...

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