The Macao SAR government's response measures during the new coronavirus epidemic have been well received, all work has been carried out in an orderly manner, and the prevention and fight against the epidemic have been very comprehensive.

At noon on February 4, 2020, the Macao SAR government decided to suspend the business of gambling and related entertainment for half a month, suspending the business of 41 casinos in Macao for 15 days from 00:00 in the morning on February 5.

The gaming industry is the pillar of Macao's economy, accounting for more than 80% of the total revenue of the SAR government and more than half of Macao's economic income. Its extended demand for services is the basis for the prosperity and development of various industries in Macao. It also provides a large number of employment opportunities. According to the data of the SAR government, 84000 local residents are engaged in the casino industry.

It can be said that the opening of the casino is related to the financial revenue of the Macao SAR government and the livelihood of all Macao people.

On the afternoon of February 17, the Macao response Coordination Center said that there had been no new confirmed cases of novel coronavirus infection in Macao in the past 24 hours.

Therefore, the SAR Government discussed with the six major enterprises to reopen the casino after 15 days of closure, that is, from 00:00 on 20 February. Gaming and entertainment venues may apply for postponement of opening within 3 days after the entry into force of this regulation, and must be opened no later than 30 days after the entry into force of the regulation. At the same time, the cleaning and disinfection of the environment should be strengthened based on public health and safety considerations, and the number and distance of gambling tables should be adjusted. All persons entering the gaming and entertainment venues must be subject to measures such as temperature monitoring and wearing masks, and only after the risk assessment and personnel safety conditions can they be opened.

Capital market does not sell accounts.

The capital market does not sell for the reopening of casinos.

Shares in six Hong Kong-listed companies, including 01928-HK, 00880-HK, 01128-HK, 00200-HK, Galaxy Entertainment and 02282-HK, fell in the first half of the day after the announcement.

Although the suspension of business has set a reopening date, but the final implementation still reflects the confidence to restore order, should be good, why gambling stocks do not rise but fall?

Within 13 days of suspension of business, the shares of the six major companies rose 4.85% to 10.89%, as shown in the table below.

Therefore, the author believes that after the Bo enterprises continue to rise, taking advantage of the opportunity to callback is a reason.

Another reason may be that the current epidemic still deters tourists, most of the service industries have not yet resumed work, and the flow of passengers to the casinos may be difficult to recover in the short term, but it is necessary to ensure the operation of certain facilities after the casinos are reopened. this part of the operating expenditure is not small. The sharp decline in income and the limited decline in expenditure have naturally undermined the profit performance of rich enterprises, which may not be a good thing for them. I am afraid this is also one of the reasons why the market is bearish.

Summary

However, the reopening of the Gehai Casino still gives us a touch of renewed confidence in the fight against the epidemic. It is believed that the epidemic will eventually pass and all industries will return to prosperity.