Sands China hit by 'crackdown on gambling junkets' talk

Speculation over a crackdown by Beijing on gambling in Macau affected the performance of the casino operator Sands China, which reported a subdued 9 per cent net increase in profit to HK$$9.58 billion for last year.

The release yesterday of a "preliminary announcement of annual results" for the year ended December 31 came after speculation in international media that the mainland government was poised to crack down on Macau's junket operators.

The South China Morning Post reported yesterday that because of the speculation, shares in casino operators SJM Holdings, Galaxy Entertainment, MGM China, Sands China, and Wynn Macau fell by between 5.2 and 6.8 per cent.

Shares in Sands China fell a further 0.55 per cent yesterday to HK$36.1.

The fall in share prices came despite doubts by analysts about the accuracy of the speculation, carried in The Times of London, with Union Gaming Research saying that a crackdown "does not make sense" as it would come before the annual meetings of the National People's Congress and the Chinese People's Political Consultative Conference due in early March.