The downturn in Macau revenues in response to the corruption crackdown and, more recently, the new anti-smoking laws is not news. The questions for investors are (i) how long the downturn is going to last and (ii) what impact the additional supply hitting the market in 2015 will have on margins. I don't have answers to either of these questions but disposable income for discretionary spending on things like gambling is still rising rapidly in China so (IMHO) its more a case of when rather than if Macau revenues will start rising again.
As far as money going into China equities is concerned, gambling money being diverted is a trivial contributor compared to the other factors at play - cooling of an overheated property market, clamp down on shadow banking products, rising disposable income + massive underweighting of equities and low valuations (pre 2014 Q4) - have been much more significant factors than diversion of a comparitavely tiny amount of money from Macau
@ chris - as an aside, thanks for taking the trouble to post the article, but Zero Perspective is one of the worst websites out there in terms of meaningless content and flawed subjective "analysis" - not worth reading and dangerous to your wealth if you do. In this case, they are merely regurgitating what many people have been reporting for months and adding some unsubstantiated assertions.
Disclosure: while I do not hold CWN I do hold other companies with interests in Macau/gambling
CWN Price at posting:
$12.63 Sentiment: None Disclosure: Not Held
