Macau casino operators have seen a revenue boost following the Chinese government’s announcement of a large-scale economic stimulus package.
According to local news sources, the announcement led to an increase in the shares of six licensed casino operators, which rose between 2.32% and 12.77% by the close of trading.
The stimulus measures include increased funding, lowered interest rates, and reduced reserve requirements for banks. The base interest rate and mortgage rates were also lowered, while brokers and insurance companies received additional liquidity.
The measures aim to restore confidence in the economy following months of slowdown.
After the announcement, Chinese stocks and bonds, especially across Asian markets, reached a two-and-a-half-year high. The Chinese Yuan also hit a 16-month high against the US dollar.
According to Brokerage Seaport Research Partners, the new monetary policy “is likely to improve sentiment around China and Macau.”
Analyst Vitaly Umansky noted that while the immediate impact on Macau’s revenues might be limited, sustained stimulus efforts could improve China’s economy in the medium term.
He also emphasized that “a stronger recovery in gross gaming revenue (GGR) would be crucial” for Macau’s market in 2025, supported by improving economic conditions and consumer sentiment.
Recent updates from Macau include the Monetary Authority’s plans to introduce a digital currency, following Hong Kong’s second-phase testing of the e-HKD Pilot Program.
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