Macau casino stocks rise after China eases Covid-19 countermeasures
The quarantine period in China has been reduced to seven days plus three days of self-monitoring.
China.- Macau has welcomed the announcement of an easing of Covid-19 countermeasures in mainland China as the city deals with its own new outbreak of local Covid-19 cases. Authorities in China have reduced the quarantine requirement for visitors to seven days plus three days of self-monitoring.
The news provoked a surge in the share prices of Macau casino operators. Wynn Macau’s shares were up 12.8 per cent, Sands China’s 11.6 per cent and Galaxy Entertainment and SJM Holdings by about 7 per cent. SJM Holdings jumped 9.7 per cent and Melco Resorts & Entertainment was up almost 14 per cent in pre-market trading in the US.
Analysts at Sanford C. Bernstein Ltd said: “While this is the first official nationwide change in quarantine policy in China since March 2020, several cities had already been given the go-ahead to do this in May and June and have had this new policy in place (including Beijing, Wuhan, Wuxi, Xuzhou). Some Chinese cities were piloting a 10-day quarantine period since April.”
However, they pointed out: “There is still no clarity about when border easing for Macau will occur. In the end, these changes are needed to see a rebound for Macau business.”
China remains the only country with a largely quarantine-free travel bubble with Macau.
