Investors are slowly warming back up to the Macau casino sector with more indications circulating that China will reopen its economy in 2023.
Economists forecast the reopening will begin in Q2 of 2023 after the parliamentary meeting which usually happens in early March. The government is seen gradually relaxing quarantine requirements for COVID cases and make domestic travel between different areas of the country easier. A key focus of authorities will be making sure vulnerable groups are vaccinated and preparing more medical resources, according to Bloomberg. Educational campaigns are expected to be utilized to tamp down public concerns over catching COVID. That all sets up well for Macau casino traffic improving and attracting international visitors once again.
Nomura economist Lu Ting thinks poor economic data and social unrest will prompt Beijing to start a real opening as soon as March 2023, although he warned policymakers might still think differently when being faced with rising COVID case counts.
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) rose 5.97% in early trading on Wednesday, while Las Vegas Sands (NYSE:LVS) gained 2.33% and Wynn Resorts (NASDAQ:WYNN) was 1.88% higher. The three casino stocks are on their way to a third straight up day.