Hong Kong Stocks fall for casino vulnerability
A measure of gambling companies lost 2.8 percent, the lowest level since the beginning of September.
China.- The arrest of 18 working members of the Crown Resorts in Macau impacted negatively on this week’s Hong Kong stocks . A measure of gambling companies lost 2.8 percent, retreating to its lowest level since early September. Galaxy Entertainment, Sands China and Wynn Macau Ltd. dropped at least 2.7 percent.
The Hang Seng Index fell 0.8 percent at the close, after also dropping 2.6 percent last week. The decline of Hong Kong Stocks was due to the legal problems that casino operators are facing in the national gambling hub. Chinese authorities have not yet published a statement on the issue, nor let Crown representatives to communicate with the arrested employees.
Sands China Ltd. and Galaxy Entertainment Group Ltd. retreated as the detentions, which include the head of Crown’s VIP International team, highlighted the industry’s vulnerability to Chinese crackdowns. “The casino industry is in a sensitive position as recent Chinese government policy has been anti-corruption,” said Ronald Wan, chief executive of Partners Capital International Ltd. in Hong Kong. “The rate hike in December is unavoidable. Some people use that as an excuse to sell down the Hong Kong property sector.”
