Guangzhou Restrictions Affect Macau Casino Stocks

Guangzhou Restrictions Affect Macau Casino Stocks

The coronavirus is still a big issue that has yet to be dealt with. Countries impose restrictions and lockdowns to lower the coronavirus curve of new cases. China is one such country and it has a zero-tolerance policy when it comes to this virus.

Recently, the government introduced new restrictions to help battle COVID. The Macau region is also affected by the restrictions and so is Guangzhou. These new restrictions affect casinos all over Macau which is why the stocks have dropped significantly.

China’s Zero-Tolerance COVID Policy Is Still in Effect

China has been dealing with COVID the hardest as the virus originated in the country. It’s the country that has had the biggest number of positive cases. Nowadays, the number of positive cases has also risen which has prompted the new wave of restrictions.

Another factor to consider is the recent election that took place in China. The Communist Party needed a leader and an election was needed. The election ended in favor of the current president Xi Jinping. In other words, he was reelected as president. After the election, it was expected that the restrictions will loosen up, but the president introduced new ones.

Beijing and Guangzhou have been directly impacted by the restrictions and so has the entire Macau region. The president ordered schools and restaurants to close down to help in the battle against the new wave of the coronavirus.

The restrictions are needed but have taken their toll on the economy of the entire country. This is especially visible in the Macau region as a chunk of the economy depends on casino operations. The stocks of Wynn Resorts dropped to 6.36%, and those of Melco Resorts and Entertainment dropped by 9.39%. Moreover, Las Vegas Sands lost 8.65% due to the new restrictions.

The thing about the coronavirus is that it shows no signs of stopping. It’s still an issue that all countries need to deal with. China has decided to take on a strict approach with a new wave of restrictions. This will certainly lower new COVID cases, but it will also impact the economy.

It’s also possible that the Chinese government will introduce new measures to help keep the economy up. Battling the virus is just one side of the coin, the other side of it is keeping people employed, and invested in their businesses and by taxing their revenue the country will stay afloat.

The president has experience in dealing with the virus which is why it’s unlikely that he will leave China’s economy in shambles. Time will tell how China will continue to adapt to curb the rising tide of COVID.


Countries will continue to implement all sorts of measures when dealing with such a devastating virus. The Macau region will suffer because of the new restrictions, but it’s possible that new economic measures will help keep the economy of the region and the country in place. Both are needed for China to thrive in these troubling times.