- Short seller Jim Chanos told CNBC on Thursday that he is betting against the US casino giants that rely heavily on their presence in Macau.
- Shares of Wynn Resorts,MGM Resorts, and Las Vegas Sands all fell.
- The three casino giants account for half the gaming revenue in Macau, and need Beijing and Washington to stay on good terms, according to Bloomberg.
- Wynn Resorts‘s CEO warned last month that its Macau operations have seen a notable slowdown amid the ongoing trade war between the US and China.
Short seller Jim Chanos is betting against the US casino giants that rely heavily on their positions in Macau as a way to play President Donald Trump’s trade war with China.
“One area I’m scratching my head about is the Macao casino guys,” Chanos told CNBC in an interview on Thursday.
“We’re basically short the US guys. Wynn and Las Vegas Sands, particularly their Hong Kong-listed Asian operations. In our hedge fund, we’re actually long the Chinese operators.”
As a result, the casino giants are pressing session lows. Here’s the scoreboard as of 3:01 p.m. ET on Thursday.
The three American companies are among the biggest casino players in Macau, accounting for half the gaming revenue in the region, according to Bloomberg. They need Beijing and Washington to stay on good terms as their two-decade-old licenses will expire in the next four years.
Chanos said he has been shorting these stocks since this summer, when Trump rolled out his first round of tariffs against China. So far, Trump has imposed duties on $US250 billion Chinese imports, prompting China to retaliate. Trump and Chinese President Xi Jinping recently agreed to a trade-war truce to give the two sides some room to negotiate.
The casinos have already felt some pain from the trade war.Wynn Resorts‘s CEO warned last month that its Macau operations have seen a notable slowdown after China’s National Day Golden Week, a seven-day holiday at the beginning of October.