Sunday, August 14, 2022

China’s 500.com jumps on gov't approval for lottery sales


500.com Ltd. rose to a two-month high in New York after China allowed provinces to approve lottery sales and payouts without waiting for central approval, Bloomberg reported.

The online sports lottery operator advanced 6.2 percent to $20.20 on Thursday, the highest since August 17. Trading volume of 1.4 million shares was more than double the daily average of the past three months. The stock extended its rally to 33 percent from a September 29 low as Chinese Internet companies gained in New York.

China removed a requirement for central government approvals on lottery sales and payouts, 500.com said in a post on the company’s Weibo account Thursday. The country’s State Council announced the cancellation of 62 administrative approval items, including lottery approvals, on its website.

“The government is able and willing to prop up what they deem to be industries and companies that have decent fundamentals but are getting hit by a downturn in the equity markets,” Ankur Patel, chief investment officer at R-Squared Macro Management LLC, which invests in Chinese stocks, told Bloomberg by phone Thursday.

China has gone to unprecedented lengths to support economic growth, increasing stimulus to the real estate sector as well as the auto and casino industries.

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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