Goldman Sees Silver Lining for Macau Casinos Hit by TyphoonBy
Macau’s pummeling by typhoons makes it unlikely China’s government will adopt a tougher stance toward the city, according to Goldman Sachs Group Inc.
While investors are likely speculating about political implications from China’s forthcoming Communist Party congress, there is “little likelihood for drastic policy change targeted at Macau” while the city is still clearing up, Goldman analysts led by Simon Cheung wrote in a note, reiterating a buy rating on some casino stocks. Concern over a deeper crackdown on corruption and curbs on capital outflows have weighed on the equities in recent years.
Credit Suisse Group AG also reiterated its bullish view of Macau, helping ensure casino stocks were among the few gainers on Hong Kong’s benchmark Monday. Typhoon Hato swept through the region last month, causing a number of deaths in Macau.