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Casino Companies Plummet on Hong Kong Stock Exchange

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On the stock exchange in Hong Kong, casino companies fell hard on Wednesday due to fears of stricter rules in the Chinese gambling paradise Macau.

 

The other stock markets in Asia also mainly suffered losses. A number of disappointing macroeconomic data from China fueled concerns about a slowdown in the global recovery from the corona crisis.

In Hong Kong, the Hang Seng index lost 1.9 percent in the interim. Shares of casino companies Wynn Macau and Sands China plunged nearly 30 percent on fears that the gambling industry in the Macau peninsula is more restricted. Debt-plagued Chinese real estate developer Evergrande (down 4.7 percent) fell further on reports that the company will not pay interest this month. Evergrande previously warned that it might not be able to meet its financial obligations.

The Shanghai stock market fell 0.3 percent after disappointing Chinese retail sales and industrial production growth in August. Retail sales showed the smallest increase since August last year, and industrial production growth fell to July 2020 levels. In addition, new local coronavirus outbreaks and supply chain disruptions threaten the economic recovery of the Chinese economy.

The Nikkei in Tokyo ended up 0.5 percent down at 30,511.71 points. Japan’s main index has risen sharply since Prime Minister Yoshihide Suga announced his departure, reaching its highest level in August 1990 on Tuesday. Investors hope Suga’s successor will do more to boost economic recovery. However, apple’s Japanese suppliers fell after presenting the new models of the iPhone and other products from the American tech group. Murata Manufacturing lost 2.8 percent, and Ibiden fell 1 percent.

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