\n Posted on: September 26, 2024, 02:21h.\u00a0\n <\/p>\n
\n Last updated on: September 26, 2024, 03:01h.\n <\/p>\n
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<\/div>\n<\/p><\/div>\n<\/p><\/div>\nFor the second time this week, Macau casino stocks, including Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN), rallied, this time on speculation China could unleash a series of stimulus measures aimed at shoring up its ailing economy.<\/p>\n In late trading Thursday, Sands and Wynn were higher by 7.79% and 8.24%, respectively, following reports by Chinese state-run media that the Ministry of Finance and Ministry of Civil Affairs are close to distributing one-time cash payments to select groups of Chinese citizens. The reports suggest the ministries have been mandated to make disbursements before October 1.<\/p>\n On Tuesday, Macau casino stocks popped after<\/a> the People\u2019s Bank of China (PBOC) pared its reserve requirement ratio (RRR) and its seven-day reverse repo rate while also lowering mortgage rates. Some market observers believe the steps by China\u2019s central bank are more of a floor than a ceiling, indicating more monetary easing could be on the way.<\/p>\n<\/div>\n The rate cuts and stimulus news are bolstering long-struggling Macau casino stocks<\/a>. For example, Wynn\u2019s Thursday gain accrued on more than double the average daily volume while shares of Melco Resorts & Entertainment (NASDAQ: MLCO), the other US-listed Macau operator, are higher by 15.39% in late trading, also on more than double the average daily turnover.<\/p>\n For several years, Chinese equities, including Macau casino stocks, have been duds, but between the Federal Reserve lowering interest rates, the PBOC following suit, and the aforementioned Chinese stimulus measures, some professional investors see opportunity emerging with stocks in the world\u2019s second-largest economy.<\/p>\n I thought that what the Fed did last week (its 50 basis points cut) would lead to China easing, and I didn\u2019t know that they were going to bring out the big guns like they did,\u201d said David Tepper in an interview with CNBC<\/em>. \u201cThey exceeded expectations, and [People\u2019s Bank of China governor Pan Gongsheng] promised to do more and more and more, and that\u2019s very strange language, especially for any central banker, but especially over there.\u201d<\/p>\n<\/blockquote>\n Tepper, who owns the NFL\u2019s Carolina Panthers, controls hedge fund Appaloosa Management and has been a frequent investor in gaming equities<\/a>.<\/p>\n Separately, J.P. Morgan told clients to prepare for a spate of positive economic news out of China in the months ahead as the effects of monetary easing and fiscal stimulus take shape.<\/p>\n The rate cuts and stimulus headlines are having a clear impact on shares of Las Vegas Sands. With Thursday\u2019s gain, the parent of Sands China<\/a> is higher by almost 15% over the past week, and more than 21% over the past month.<\/p>\n That bullish price action has nearly wiped out all of the stock\u2019s year-to-date losses and has the shares on pace for the highest closing print since May.<\/strong><\/p>\n On Wednesday, Barclays published a report in which it named Sands one of 10 stocks that could benefit if Vice President Kamala Harris (D) wins the presidency in November. Sands was the only gaming name in the group. No casino stocks were mentioned among the bank\u2019s best ideas should former President Donald Trump win a second term.<\/p>\n<\/div>\n![\"Wynn](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/08\/103881628-RTX2LCXR-858x572.jpg\")
Some Investors Turn Bullish on Chinese Stocks<\/h2>\n
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Good Week for Sands Stock<\/h2>\n