Direct investment in the gaming industry in Macau fell by 30% in 2020
Macau’s Statistics and Census Bureau (DSEC) has reported that direct investment in the gaming industry in Macau fell by 30 per cent in 2020 mainly due to the Covid-19 pandemic.
Macau.- The Statistics and Census Bureau (DSEC) has revealed that direct investment in Macau’s gaming industry fell 30 per cent last year. However, direct investment in financial activities increased by 4.6 per cent year-on-year to MOP86.8bn.
In 2020, Macau recorded MOP300.2bn in foreign direct investment, a decrease of 14.5 per cent from last year. Most of the investments came from Hong Kong or the Cayman Islands. Direct investment from Hong Kong declined 5.3 per cent to MOP84.06bn while investment from the Cayman Islands was down 12.9 per cent to MOP69.74bn.
Nonetheless, the amount of direct investment in the Macau of each of the two known offshore jurisdictions is higher than that of Mainland China, at MOP58.7bn.
Macau Business reported that the stock of foreign direct investment totalled MOP69.8bn, up 21.6 per cent year-on-year. Mainland China’s foreign direct investment was MOP 61.29bn, of which Guangdong accounted for 77.6 per cent.
Macau’s gross gaming revenue plummeted 79.3 per cent to MOP60.44bn (US$7.58bn) in 2020 amid the Covid-19 pandemic.
Investment firm launches third Macau gaming fund
Ossolinski Holdings, an investment firm founded in 2009 by Matthew Ossolinski, has announced the launch of its Macau Gaming Fund III.
According to Macau Business, Ossolinski Holdings said the fund’s target customers are “contrarian investors” who see a buying opportunity after a new outbreak of Covid-19 cases hurt Macau’s expectations for October’s Golden Week and led to a massive decline in visits.
Macau casino operators stocks also fell heavily after the government suggested changes to the current city’s gaming laws amid a public consultation.
Ossolinski Holdings said: “Of course, there are risks and concerns, such as increased government interference in dividend distributions. However by the time, there is so-called certainty, the stocks likely won’t be cheap anymore.”
