In a familiar refrain for the sector, a signal of looser restrictions in Macau lifted a number of casino stocks.
Chinese equities rallied broadly on Friday as rumors swirl that Chinese regulators are ready to reopen after the cementing of Xi Jinping as leader at the 20th National Congress of the Chinese Communist Party in late October. The rumors were abetted by a report in the Party-backed Global Times that indicated health officials may soften their implementation of lockdowns . Adding to optimism, Bloomberg reported that the first round of US audits on Chinese companies finished ahead of schedule.
The bellwether Hang Seng Index rose 5.36% on Friday, indicating the level of bullishness to close the week. The index has risen about 9% to start the month of November.
The signal of loosening restrictions is, of course, likely most beneficial for Macau-linked casino stocks that have been consistently hampered by lockdowns and travel tamps. Melco Resorts ( NASDAQ: MLCO ) led gains with a nearly 10% jump on Friday, while Las Vegas Sands ( NYSE: LVS ), MGM Resorts ( NYSE: MGM ), and Wynn ( NASDAQ: WYNN ) each marked sharp gains as well.
Macau-specific casino stocks: Wynn Macau ( OTCPK:WYNMF ) ( OTCPK:WYNMY ), Sands China ( OTCPK:SCHYY ) ( OTCPK:SCHYF ), MGM China ( OTCPK:MCHVF ) ( OTCPK:MCHVY ), Galaxy Entertainment ( OTCPK:GXYEF ), SJM Holdings ( OTCPK:SJMHF ) ( OTCPK:SJMHY ), and Studio City International ( MSC ).
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Macau-linked casino stocks move higher on reopening hopes