Macau casino shares are down 55 percent from their January 2014 peak, despite rallying 21 percent in July, according to Bloomberg Intelligence analysts.
“The reasons for the collapse include a slump in gambling revenue caused by a hiatus in resort openings, an anti-extravagance mindset among wealthy Chinese, a casino-floor smoking ban and challenging comparisons,” Tim Craighead and Margaret Huang said in a note.
The stocks doubled in 2013, spurred by the Cotai Central resort and accelerating earnings estimates.
“A wave of new resorts and stabilizing Chinese economic growth could help revive revenue.”
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