By Tyler Durden
Casino stocks have plunged following a report in the South China Morning Post that in China’s latest crackdown on capital outflows, Beijing is cutting in half the amount of money account holders of China UnionPay can withdraw from ATMs in Macau, the world’s largest gambling market.
The Monetary Authority of Macau’s ATM withdrawal cut is understood to be a reaction to attempts by illicit money movers to circumvent Beijing’s move at the beginning of this year to cap at 100,000 yuan (HK$112,600) the annual amount that UnionPay card holders could withdraw.
The limit imposed by the Monetary Authority of Macau takes effect Saturday, cutting the withdrawal limit from 10,000 to 5,000 patacas, and follows the discovery that as much as 10 billion patacas in China UnionPay ATM withdrawals were made in one month alone. The latest capital control also comes amid so far unanswered claims that the customer voucher scheme run by Marina Bay Sands casino resort in Singapore – which allows China UnionPay card users to buy gaming chips in breach of China’s strict currency controls, a scheme we profiled over a year ago – has seen billions of yuan flow out of the mainland.
In immediate reaction, shares …read more