Property & Stock Market Will Fume Macau Casino Business

Posted: November 4, 2011 in Uncategorized

4th Nov 2011  FRI

special Analysis of Macau Casino Trends In Relation To China & Hong Kong Property Markets

Commentary by:   Professional Ground expert panel

From the latest trends of China mainland & Hong Kong property residential markets, our expert panel has performed the following brief analysis about how Macau casino landscape would be affected in the next 6 months.

(1)  First and foremost, Beijing government has already tightened up credit flow from local Chinese banking system to property developers and residential borrowing likewise. The policy has immediately affected the sales of lands (for residential) pricing.

Mainland property market to cool down... over the next 6 months

What this will translate into, is a consistent policy of pricing and inflationary control measures that will last for at least 6 – 9 months period.  This will allow the “peaceful” transition of the 18th Chinese Communist Party’s Congressional Meeting next year, with top echelon of Chinese leaderships handover to take place without major hiccups.

In the midst of this major event and control of inflationary problem in the mainland market, capital flow will turnaround and heading outwardly, to Macau, Hong Kong and other countries such as Taiwan and Singapore to find safe havens. A sizeable portion of Chinese assets (hot cash) being held by developers and Chinese officials will find their way into Macau enclave via the “Junket VIP channel”.  The casinos will boom.

(2)  Hong Kong property market looks more volatile than before.  The market sentiment is affected not only by China’s credit control measures but, also very much affected by the EU credit and debt problems, as Hong Kong is an open capital market.

The uncertainty will continue to rule Hong Hong market for at least the next 6 months or so, if not longer depending on global investment climate and flow of capital.  Property market in Hong Kong may plunge 45% as some analysts predicted.

That is to say, the volatility of Hong Kong stock market will fume casino business at the same pace.  Punters tend to seek arbitration between two volatile environment for spread of risks. So, Macau casinos remains a stable betting ground for more cash flowing into the enclave.

HK Stock market condition will fume Macau casino betting

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