Macau Casino Operators' Shares Rise After China Expands Travel Visa Scheme
By Ronnie Harui
Macau casino operators' shares rose after China expanded its individual travel visa scheme to both Macau and Hong Kong to include eight more mainland cities.
Wynn Macau's Hong Kong-listed shares were recently 5.0% higher at 8.39 Hong Kong dollars (US$1.07) on Monday morning, MGM China's shares were 3.4% higher at HK$15.08, and SJM Holdings' shares were 5.2% higher at HK$3.05. Hong Kong's Hang Seng Index was 0.5% higher at 19065.69, reversing earlier losses.
In a statement dated Saturday, China's National Immigration Administration said residents in eight mainland cities, including Taiyuan in Shanxi province, Hohhot in Inner Mongolia, and Harbin in Heilongjiang province, can apply for "individual travel endorsement" or "group travel endorsement" to and from Hong Kong or Macau. The new measures will take effect from May 27, the NIA said, citing approval from the country's State Council.
The expansion of the so-called "individual visitor scheme" visa policy for both Macau and Hong Kong should help increase visits of mid-market and higher-end travelers mostly under individual visas rather than group visas, says Vitaly Umansky, senior analyst at Seaport Research Partners, in a research report. However, air capacity will have to increase from those eight cities into Hong Kong, Guangdong, Zhuhai and Macau airports to have a material impact on visits, Umansky adds.
Eight additional cities have been included in the scheme, in addition to the two cities announced in March, bringing the total to 59 cities versus 49 previously, Umansky says. Under China's individual travel visa scheme, mainland Chinese residents can apply to travel to Hong Kong and Macau.
Seaport Research Partners currently has a buy rating and target prices of HK$53.50, HK$29.00 and HK$9.50 on Galaxy Entertainment, Sands China and Wynn Macau, respectively. It has a sell rating on SJM Holdings with a target price of HK$2.50.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
May 12, 2024 23:08 ET (03:08 GMT)
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