Shares of casino companies, including Wynn (WYNN) - Get Report, Las Vegas Sands (LVS) - Get Report, and MGM (MGM) - Get Report, are rising on news that the Chinese government has said it will loosen its travel restrictions on persons returning to the mainland from Macau.
Previously, China was requiring a 14-day quarantine policy on all visitors who had been to the gambling haven. This restriction is now being lifted, making travel to and from Macau much easier, and casino stocks, which have been down drastically since lockdowns began across the globe in February and March, are perking up.
At last check on July 13, Wynn shares traded up 13%, Las Vegas Sands up 8.4%, and MGM shares up nearly 6%.
Macau is the world's largest gambling hub, servicing 39.4 million visitors in 2019, according to the Macau Public Security Police Force. Three of every four visitors in 2019 came from mainland China, and other visitors were from Taiwan, Hong Kong, South Korea, the Philippines, and Japan.
A 34-mile bridge connects Macau to Hong Kong.
Globally, the coronavirus pandemic has claimed more than 570,000 lives, with nearly 13 million confirmed cases. According to data from Johns Hopkins, Macau has had just 46 confirmed cases. China has had more than 85,000 cases.
There are more than 3 million confirmed cases of the coronavirus in the U.S.