Las Vegas Sands, Wynn Stocks Rise on Macau Casino Recovery Hopes

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The recovery of Macau casino operators has been impacted by China’s zero-Covid policy.

Anthony Wallace/AFP/Getty Images

Casino stocks Las Vegas Sands and Wynn Resorts climbed in premarket trading Tuesday as China reportedly signaled support for Hong Kong’s plan to ease Covid restrictions.

Hong Kong’s chief executive John Lee said he wants to create “maximum room” for the region to reconnect with the world, with reports suggesting its strict hotel quarantine policy for travelers could be among the first to go.

Beijing may also be in support of Hong Kong’s reopening after Huang Liuquan, deputy director of China’s Hong Kong and Macau Affairs Office backed the region’s adjustments, according to the South China Morning Post. 

Those developments helped boost stocks in Hong Kong trading Tuesday but also helped U.S. stocks exposed to Macau—the world’s largest gambling hub. Beijing’s reported approval of Hong Kong’s move has given hope that Macau—a special administrative region just like Hong Kong—could be set for an accelerated recovery.

Macau casino operators have been impacted by China’s zero-Covid policy, with the city banned to many visitors for much of the past few years. The region’s casinos were shutdown for two weeks in July as part of fresh Covid lockdown measures.

Las Vegas Sands (LVS) and Wynn Resorts (WYNN) were both more than 3.5% higher ahead of the open. 

Shares in Wynn’s Chinese subsidiary Wynn Macau jumped 8.6% in Hong Kong trading, while Sands China stock was close to 8% higher. Wynn owns 72% of its Chinese subsidiary, while Las Vegas Sands owns about 70%. MGM Resorts International , the majority owner of MGM China , was 1.4% higher.

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