Snack's 1967
Tags: DewaPoker

China Slashes UnionPay Withdrawl Restrict In Macau By 50 pct

Share charges of casino stocks dropped in Australia, Hong Kong and the U.S. soon after news broke last week that the Chinese government was preparing to lessen the limit of per day withdrawals from UnionPay ATMs in Macau.
The daily restrict is to be halved to five,000 patacas ($626). The change which came into impact last week continues the government's crackdown on gamblers moving cash to Macau.
The news triggered a drop of 8 percent in share charges of Crown Resorts Ltd. In the United States, the share value of Wynn Resorts Ltd. dropped by 12 % while Las Vegas Sands Corp saw a drop of 13 %. MGM Resorts International stock declined by 4.three percent and Macau operator Melco Crown Enjoyment Ltd plummeted by 14 percent China has been tightening capital handle regulations as the yuan depreciates in value.
Above the previous few months among other items, foreign acquisitions have been put on hold and extra regulatory scrutiny of offers that shift yuan to foreign markets have been launched according to market sources.
Macau in the meanwhile has witnessed a revival with gross gambling revenue increasing for the fourth straight month in November, soon after nearly two many years of decline. Vitaly Umansky a Hong Kong-based analyst at Sanford C. Bernstein &Co, said that a number of people use hundreds of ATM cards to withdraw income and give it to junket agents and premium mass gamers on necessity, which is exactly where the influence would be witnessed. Umansky pointed out that almost 50 % of those going to Macau use UnionPay ATM withdrawals as a supply of funds.
Media reports are stating that the latest move is in line with the government's latest determination to scrutinize the use of UnionPay cards. Authorities recently place UnionPay cards under the scanner as they have been becoming employed illegally for transferring cash out of China. Link So far the authorities have banned the use of UnionPay cards in pawnshops & jewellery retailers positioned on casino floors and for purchasing insurance coverage in Hong Kong.
In a statement, DS Kim, an analyst at JPMorgan Chase & Co. stated,
Assuming it really is correct, we cautiously see the information as arguably ‘sending a message' to safeguard against prospective capital outflow abuses, amidst the continued decline in China's foreign exchange reserves. We note that this would be the 1st capital management measure that right targets Macau, hence could be viewed as a meaningful signal.
MGM Resorts Worldwide Chief Executive Officer Jim Murren said that although revenue may be hit due to the new rule, Macau continues to have strong long-phrase prospective customers.
Back to posts
This post has no comments - be the first one!