China’s crack down on corruption is hurting Wynn Macau




Macau slowdown

China is experiencing a slowdown in economic growth that is effecting every corner of the world. The Chinese economy has experienced decades of double-digit growth, fueling the belief that the Chinese economic sleeping dragon had finally awoken. That all came to an end in the third quarter of this year, 2015. The Chinese government is expecting to see a relatively small increase of 7% in gross domestic product for 2015.

In 2012 Chinese President Xi Jinping launched a huge crackdown on corruption and luxury spending. While the Communist Party in China has always prohibited officials from gambling, public officials and individuals in the private sector have long taken advantage of Macau’s status as a special economic zone. As such, Macau has been a favorite destination for affluent Chinese to go shopping and gambling.

Macau slowdown

Nevada-based Wynn currently owns a 72.2% stake in Wynn Macau, a casino hotel in Macau. The crackdown has led to a 37.9% decrease in net revenue for the hotel chain in Macau, from $191.4 million last year to $73.8 million this year.

survey: Is President Xi Jinping’s corruption crackdown a bad thing for the Chinese economy?

Yes, his crackdown has led to economic loss and jeopardizes foreign investment in China.
The crackdown is too recent for the full effects on the Chinese economy to have been realized. We can only wait and see.
No, regulation is important in any economic system. A crackdown on corruption benefits society as a whole.

Macau slowdown

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Is President Xi Jinping's corruption crackdown a bad thing for the Chinese economy?


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Macau slowdown

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