Bond investors turn from China property to Macao casinos

Tourism recovery supports revenues but mainland's slow recovery still a concern

20231115MACAU CASINO

An MGM Cotai employee prepares for the opening of the casino in Macau, China. Investors are beginning to see Macau casinos' bonds as "promising." © Reuters

TAICHIRO SUNAGA, NQN staff writer

HONG KONG -- Macao casino operators are attracting bond market attention.

Although these companies generally issue low-rated, "high yield" bonds, they have regained creditworthiness as the Chinese administrative region's tourist numbers recover. The trend partly reflects a shift of investment funds into Macao casino bonds amid operational uncertainties befalling Chinese real estate companies, which have had a significant presence in Asia's high-yield bond market.

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