Reports of fresh UnionPay crackdown rattle Macau casino investors

The latest UnionPay crackdown has sent investors scurrying away from Macau casino stocks.

Bloomberg reported that stocks of Macau casino operators continued to free fall since last week over concerns that Chinese government officials had removed UnionPay terminals from pawnshops located in casinos on Macau’s Cotai strip.

Investors feared that the clampdown was part of the Chinese government’s strategy to control currency outflows from Asia’s economic powerhouse. For the fifth consecutive day, the index of Macau casinos fell by 1 percent with SJM Holdings Ltd shares leading the tumble at 2.8 percent.

Wynn Macau Ltd. opened strong on Thursday but its 1.8 percent early gain eventually swung to a 0.5 percent loss. MGM China Holdings Ltd. shares were also in the red, down 0.9 percent.