Macao¡¯s casinos are facing their sharpest setback since reopening from COVID-19, with steeper-than-expected revenue declines in June and July rattling investors and raising fears of a prolonged slowdown in the world¡¯s biggest gambling hub.
The slump ends 16 straight months of growth and comes as Beijing steps up efforts to stem capital outflow ¡ª taxing offshore trusts, cracking down on cross-border brokerages, and restricting outbound investments including to Hong Kong and Macao by individual residents. Those moves have dampened sentiment among high-rollers, who are particularly sensitive to financial-market volatility.
At the same time, China¡¯s capital markets ¡ª an important barometer for big-spending gamblers ¡ª have turned sour. The MSCI China Index is down about 7% this year, making it one of the worst performers globally. As liquidity dries up and portfolios shrink, the wealth effect that typically feeds through to Macao¡¯s premium gaming segment has weakened noticeably, igniting fears of a longer downturn.
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