Citi reported that while Macau gaming investors were disappointed by the lack of progress in relaxing travel restrictions, it still believed that the recent stock adjustments were excessive, making sector valuations more attractive.

According to the report, the Qingmao Port between Zhuhai and Macao will be opened on September 8, which may mean that the mainland government will eventually lift visa restrictions and reduce the transit time of visitors to Macao. Once the mainland, Macao and Hong Kong reach high enough vaccination rates, border measures are expected to return to normal and Macau gambling stocks EBITDA will recover quickly.

Citi continues to be bullish on Sands China (1928.HK), 0880.HK (SJM) and 0027.HK, each of which is expected to boost market share, while Sands' Chinese parent LVS remains the industry's first choice.