Macau casino stocks pop on report China may end zero-tolerance COVID policy

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Macau casino stocks jumped in early trading on Wednesday after a report indicated that China may pull back on its zero-tolerance COVID policy and ease some restrictions.

Las Vegas Sands (LVS +8.4%), Melo Resorts & Entertainment (MLCO +10.8%), MGM Resorts (MGM +3.7%) and Wynn Resorts (WYNN +5.1%) all pushed higher.

Sources told The Wall Street Journal that Chinese officials are looking into using travel bubbles, collecting data on new antiviral drugs and looking for supply partners for Chinese mRNA vaccines. Specific policy changes are anticipated to be enacted in the spring.

"In the near future, at an appropriate time, there will be a Chinese-style roadmap for living with the virus," noted Zeng Guang, China’s former chief epidemiologist at the Chinese Center for Disease Prevention and Control.

Macau casino revenue fell short of estimates in February.

Comments

[Silvio spicacci minervini]

Covid seems still a huge issue. I think they had the wrong strategy

[Shaduc]

@Silvio spicacci minervini Unlike Hong Kong, China ruled Macao since the late-1960s.

[GwailoHK]

This would be great.

However, In Hong Kong they are going in the other direction with lockdowns coming.

So I believe it when I see it.

[cowboy-az]

This would be a material change for sure. As long as 0CV in place, Macau can't get out of the dumper.

[auzadventure]

Gonna be hard. Switching to endemic will prove the Wests strategy of so called freedom living.

[cssys]

stock is dirt cheap.

[Faustina2]

Fine with me....