Future of Macau Casino Trade

Posted: May 23, 2012 in Uncategorized

by:   Professional Ground Decoder experts panel

Why Analysts Are Wrong About Macau Assumptions

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Most western investment analysts still don’t understand China.  They assume that the Chinese mainland economy to be the same as western’s free economic capital market.  These analysts are dead wrong!

So long as China remains as”developing” country, China economy will continue to grow at the rate of well above 6% in GDP. That’s enough to off-set whatever fall-offs from the European economies. 

This year is critical to China’s transition of political (and govt.) leaderships.  As usual, at this jucture Bejing central govt. has started to trim down the high expectations of its growth before the nation goes in for its 18th CCP congress meeting. The Chinese Communist Party has to ensure that there’s no political and economic upheaval during this period till the 18th CCP Congress, including no overheating of domestic market and inflationary pressure. Only when there’s a relatively smooth transition of top leaderships takes place after the congress meeting, the new team of China leaderships will then “allow” the domestic economy to pick up steam gradually again.  Currently premier Wen has already started to ease off the pressure on tight credit environment by the banks to set the stage right; for the new era of post 18th Congress Meeting. 
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It is envisaged that China economy will gain quite a strong boost from the 4th quarter this year onward, with improved liquidity from the credit loans for private busnesses, housing and stimulation of domestic consumption as well as govt. infrastructure captal investments. 

In summary, here’s enough room for continued expansion of Macau gaming market, at the rate of 23 – 25% (overall) on average growth in gross casino revenue for the next 5 years.  Stay calm, guys.

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