{"id":50982,"date":"2017-05-24T14:56:51","date_gmt":"2017-05-24T21:56:51","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=50982"},"modified":"2017-05-24T13:01:08","modified_gmt":"2017-05-24T20:01:08","slug":"analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery\/","title":{"rendered":"China\u2019s Anti-Corruption Drive Could Still Hurt Macau\u2019s Economic Recovery, Market Analysts Warn"},"content":{"rendered":"

An anti-graft and corruption campaign in China has been ongoing for more than two years. For a while, the government in Beijing seemed to be focussing on casino junket operators in Macau, with sweeps that resulted in arrests of casino executives as well as junior-level employees.<\/p>\n

\"Chinese
Chinese President Xi Jinping may not be done going after casinos as part of an anti-corruption campaign that contributed to Macau’s economic slide. (Image: Thanh Nien News)<\/figcaption><\/figure>\n

The attention on casino marketers seems to have subsided, and since the last big bust<\/a>, as casinos move away from a reliance on high-rollers, Macau\u2019s economy seems to be getting healthy again. But according to investment brokerage firm Sanford C. Bernstein in a warning to investors, that rebounding economy remains vulnerable to the whims of Chinese authorities and President Xi Jinping.<\/p>\n

\u201cThere is no guarantee that the anti-corruption campaign continues to soften; it could intensify again,\u201d the company told its clients in a memo this week.<\/p>\n

\u201cWe have repeatedly highlighted the [Chinese government\u2019s] policy risks that can create headwinds for Macau\u2019s gaming sector.\u201d<\/p><\/blockquote>\n

Cautious Rebound<\/h2>\n

China\u2019s anti-corruption drive, which kicked off in 2014, scared off many high-rollers who comprise Macau\u2019s VIP segment with tightened controls on the junket industry<\/a> that arranged their trips to China.<\/p>\n

Analysts say the crackdown contributed to an economic slump in Macau that lasted for more than two years. Macau appeared to bottom out about a year ago, and has since enjoyed rising revenues for nine consecutive months through April.<\/p>\n

In early May, Melco International chairman and CEO Lawrence Ho told shareholders that he believed Macau\u2019s gaming industry would return to its 2013 peak size of $45 billion by 2022.<\/p>\n

\u201cThe crackdown wasn\u2019t really focused on gaming,\u201d Ho explained. \u201cIt was focused on anti-corruption and anti-extravagance. Gaming, like all luxury sectors, was really just collateral damage.\u201d<\/p><\/blockquote>\n

Ho said the worst impacts from the crackdown had passed.<\/p>\n

\u201cThe middle class and wealthy individuals in China, who didn\u2019t do anything wrong, have realized they\u2019re in the clear, and can now go back to living upscale [lives] and having fun.\u201d<\/p>\n

About Face?<\/h2>\n

Meanwhile, Macau has curbed in its reliance on the VIP sector that once accounted for some 60 percent of revenues and reinvented itself as a destination for the middle classes, largely with the support of Beijing.<\/p>\n

\n

But news earlier this month about ATM machines in Macau being retrofitted with face recognition technology gave China observers a pause. The technological upgrade suggested that Beijing still might have significant concerns about capital flight from the mainland and money laundering in Macau.<\/p>\n<\/div>\n

\u201cOver the past year,\u00a0the anti-corruption campaign appears to be moderating,\u201d the Bernstein analysts said. \u201cHowever,\u00a0in March and April 2017, we noticed a small spike in anti-corruption related activity. It is too early to call this a new trend, but it could indicate slowing of the moderation, and may in fact be a pick-up in activity.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

An anti-graft and corruption campaign in China has been ongoing for more than two years. For a while, the government in Beijing seemed to be focussing on casino junket operators in Macau, with sweeps that resulted in arrests of casino executives as well as junior-level employees. The attention on casino marketers seems to have subsided, […]<\/p>\n","protected":false},"author":42,"featured_media":50985,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"\nAnalysts Warn China\u2019s \u201cAnti-Corruption Drive\u201d Could Hurt Macau Recovery<\/title>\n<meta name=\"description\" content=\"There's no guarantee that China\u2019s anti-corruption drive, which ensnared high-roller junket operators in Macau, is over, say Bernstein analysts.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Analysts Warn China\u2019s \u201cAnti-Corruption Drive\u201d Could Hurt Macau Recovery\" \/>\n<meta property=\"og:description\" content=\"There's no guarantee that China\u2019s anti-corruption drive, which ensnared high-roller junket operators in Macau, is over, say Bernstein analysts.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2017-05-24T21:56:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-05-24T20:01:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/05\/Xi-Jinpng.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"840\" \/>\n\t<meta property=\"og:image:height\" content=\"560\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Casino.org Staff Writer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Casino.org Staff Writer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery\/\",\"url\":\"https:\/\/www.casino.org\/news\/analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery\/\",\"name\":\"Analysts Warn China\u2019s \u201cAnti-Corruption Drive\u201d Could Hurt Macau Recovery\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/05\/Xi-Jinpng.jpg\",\"datePublished\":\"2017-05-24T21:56:51+00:00\",\"dateModified\":\"2017-05-24T20:01:08+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/8c48bf89dc86da77b4d856c7b3b78d77\"},\"description\":\"There's no guarantee that China\u2019s anti-corruption drive, which ensnared high-roller junket operators in Macau, is over, say Bernstein analysts.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/analysts-warn-chinas-anti-corruption-drive-could-hurt-macau-recovery\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/05\/Xi-Jinpng.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/05\/Xi-Jinpng.jpg\",\"width\":840,\"height\":560,\"caption\":\"Chinese President Xi Jinping may not be done going after casino junkets as part of an anti-corruption campaign that contributed to Macau's economic slide. 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