U.S. casinos with exposure to Macau slashes

Bloomberg - - U.S. casinos with exposure to Macau tumbled on Wednesday, extending a slump that started in the prior session after officials in the Asian gambling hub said they would tighten restrictions on operators.

Wynn Resorts Ltd. fell on Tuesday as much as 10.5% after an 11% decline. That is the biggest drop in the stock since March 2020, since two days long. Las Vegas Sands Corp. dropped as much as 6.2%. Melco Resorts Entertainment Ltd. rose 11%, while MGM Resorts International fell as much as 3.9%.

Wednesday s selloff started in Hong Kong, where Macau's top gaming shares listed in Asia lost a record $18.4 billion in combined market. Officials said changes to the casino regulations would include appointing government representatives to supervise companies in the world s biggest gaming hub.

It is another mattering action of increasing regulation aimed at some of the higher growth parts of the economy, said Greg Taylor, chief investment officer at Purpose Investments. The Chinese government will make it receptive to investors expanding in China. A Bloomberg Intelligence index tracking big Asia peers fell 23% earlier. Officials in the enclave -, the only place in China where gambling is illegal - announced that they would begin a 45 - day public consultation period to discuss legal revisions.

Another round of regulatory scrutiny in China is punishing the gambling capital of the world, with the repercussions being felt globally, said Another round of regulatory scrutiny in China is punishing the gambling capital of the world, with the repercussions being felt globally, said Edward Moya, senior market analyst at Oanda Corp. Foreign investors are growing frustrated with all the Chinese crackdowns and uncertainty as to how much further officials will go. The latest clampdown is also hurting China firms in acquiring American depository receipts. The Nasdaq Silver Dragon Chinese Index fell Wednesday for a sixth day, as much as 2.1% fell on Wednesday.

Shares of e-commerce companies decreased after China reported weaker than expected retail sales figures for August. Alibaba Group Holdings Ltd. and JD.com Inc. all fell by more than 2.6% each, extending losses to the third straight session.

Furthermore, ADRs for Yum China Holdings, Inc. fell as much as 6% after the restaurant operator warned that its third-quarter profits could fall by up to 60% as a result of the latest Covid - 19 outbreak in China.