Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Shanghai - Hong Kong Stock Connect  >  Sands China Ltd.    1928   KYG7800X1079

SANDS CHINA LTD.

(1928)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Exclusive: Protest-free Macau to win financial policy rewards from China

share with twitter share with LinkedIn share with facebook
share via e-mail
12/12/2019 | 01:06am EST
Chinese national flag and a Macau flag fly in front of Sands Macao in Macau, China

Chinese President Xi Jinping will visit Macau next week to announce a raft of new policies aimed at diversifying the city's casino-dependent economy into a financial centre, according to over a dozen interviews with officials and corporate executives.

The move is seen by officials and executives in Macau as a reward for having avoided the anti-government protests that have gripped nearby Hong Kong over the past six months.

The policies include the establishment of a yuan-denominated stock exchange and the acceleration of a renminbi settlement centre already in the works, as well as the allocation of land for Macau to develop in neighbouring mainland China, they said.

While there has been speculation about the proposals in recent months, the fact they have been officially approved has not previously been reported.

"The financial industry used to be an idea that we reserved for Hong Kong," said one Chinese official who requested anonymity. "We used to give all the favourable policies to Hong Kong. But now we want to diversify it."

Xi's trip to mark the 20th anniversary of Macau's return to China comes as the central government has praised the city for upholding the "one country, two systems" framework that governs both Hong Kong and Macau.

In contrast, China has condemned anti-government protests in Hong Kong and accused demonstrators in the financial centre of undermining national stability.

China's Hong Kong and Macau Affairs Office did not respond to requests for comment.

     

DIVERSIFIED ECONOMY

Beijing has instructed state-owned banks and enterprises to help set up infrastructure in Macau to aid financial diversification, four sources familiar with the matter told Reuters.

Two officials who helped develop the Shanghai stock exchange moved to the territory this year to help establish its yuan-based stock exchange, one of the sources said.

Chinese officials, and bankers in Hong Kong, say the push to develop financial infrastructure in Macau is part of a plan to avoid any major market disruption in Hong Kong that could impact Chinese businesses.

The idea is not for Macau to replace or undermine Hong Kong but for China to have a contingency plan in case the situation in Hong Kong worsens, they said.

"Xi Jinping has made very clear that he wants a diversified Macau economy," said another Chinese official who declined to be identified. The future focus will be on tourism and finance, to make it a centre to host international meetings like Singapore."

Macau's new exchange will initially be focused on bond trading to encourage local and Chinese companies to issue debt in the city, according to a Chinese official familiar with the matter.

The exchange will also focus on start-ups and target companies from Portuguese-speaking countries, ensuring it does not directly compete with bourses in Hong Kong or in the southern Chinese city of Shenzhen, according to six Macau executives and Chinese officials. Macau was a Portuguese colony until it was handed to China in 1999.

An announcement that Macau will join the Beijing-backed Asian Infrastructure Investment Bank is also expected during Xi's visit, two Chinese officials said.

DEEPER INTEGRATION

Xi is expected to announce policies to further integrate Macau with mainland cities in the Greater Bay Area, the region around the Pearl River Delta that also includes Hong Kong, according to Chinese officials and Macau executives.

As part of that effort, Macau will be allocated more land on the mainland island of Hengqin to develop in areas such as education and healthcare, they said.

Macau's casino operators, which have been hit by slowing economic growth, the Sino-U.S. trade war and a weakening Chinese yuan, are also looking at development opportunities in Hengqin, casino executives said.

The economic slowdown in China has added to pressure on Macau to diversify its economy from the casino industry, which accounts for more than 80% of government revenues.

"We plan to work with the Macau government to launch programs that encourage next-generation entrepreneurs to start businesses in Hengqin," said Lawrence Ho, chief executive of Melco Resorts, which runs three casino resorts in Macau.

Sands China, another casino operator, said it was looking at setting up a training academy in Hengqin.

Beijing has previously allocated Macau portions of land on the former oyster farming island, which lies just across the water from its casinos, including land for Macau University's campus which opened in 2013.

While the new initiatives were not explicitly linked to toeing the official line, Chinese officials have repeatedly praised Macau for setting an example in maintaining national security and adhering to the central government's requirements.

"This is the candy that Hong Kong did not want," said Larry So, a political commentator and retired Macau university professor. "It is a gift for Macau, for Macau being a good boy."

    

MACAU MODEL

In recent weeks, Xi has said at several gatherings of senior government officials that it is crucial to find ways to implement the "Macau model" in Hong Kong, two people familiar with the discussions said, on condition of anonymity.

"President Xi Jinping spoke highly of the practice of one country, two systems with Macau characteristics. This is an encouragement and a spur," Macau's chief executive, Fernando Chui, said at a meeting with Chinese officials in Beijing on Dec. 3, according to an official transcript.

More than half of Macau's population of 600,000 immigrated from China in recent decades, which has helped the territory foster a stronger affinity for the mainland than in Hong Kong, where most of the population was locally born.

Millions of dollars also have been ploughed into creating youth associations in Macau linked to the Chinese government. Many of Macau's associations are traditional pro-establishment groups that dole out generous subsidies to residents.

"Macau will be an example of China's reunification," Ho Iat Seng, who is set to become Macau's next chief executive on Dec. 20, told state broadcaster China Central Television last month.

The city was well placed to "better develop the one country, two systems principle", he added.

(Reporting by Farah Master and Keith Zhai; additional reporting by Sumeet Chatterjee in Hong Kong and Cate Cadell in Beijing; Editing by Philip McClellan)

By Farah Master and Keith Zhai

Stocks mentioned in the article
ChangeLast1st jan.
GRAND PARADE INVESTMENTS LIMITED -1.67% 3.54 End-of-day quote.0.00%
HEALTHCARE CO., LTD. 4.96% 31.1 End-of-day quote.40.36%
MELCO HOLDINGS INC. -6.90% 2373 End-of-day quote.-4.16%
MELCO INTERNATIONAL DEVELOPMENT LIMITED -2.30% 17.02 End-of-day quote.-2.30%
MELCO RESORTS & ENTERTAINMENT LIMITED -4.51% 18.65 Delayed Quote.-19.20%
SANDS CHINA LTD. -1.04% 38.1 End-of-day quote.0.26%
SPUR CORPORATION LIMITED -5.58% 23.5 End-of-day quote.-5.58%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) 0.11% 7.03227 Delayed Quote.0.92%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on SANDS CHINA LTD.
02/25MICHAEL BLOOMBERG : Trump Allies Push Donors in Effort to Counteract 'Bloomberg ..
DJ
02/21SANDS CHINA : Preliminary Announcement of Annual Results for the year ended Dece..
PU
02/20SANDS CHINA : Re-appointment of President, Appointment of Chief Operating Office..
PU
02/09SANDS CHINA : Inside Information - Results of our Controlling Shareholder, Las V..
PU
02/04Bad Luck Hits Macau Casinos With 15-Day Coronavirus Shutdown -- Update
DJ
02/04Deadly Coronavirus Forces China's Gambling Hub to Shut Its Casinos
DJ
02/03SANDS CHINA LTD. : Ex-dividend day for interim dividend
FA
02/02Macau casino revenue drops 11.3 percent in Jan as coronavirus worries mount
RE
01/29Hong Kong Stocks Slump, Catching Up to Coronavirus Fears -- 2nd Update
DJ
01/29Hong Kong Stocks Slump, Catching Up to Coronavirus Fears -- Update
DJ
More news
Financials (USD)
Sales 2020 7 353 M
EBIT 2020 1 567 M
Net income 2020 1 286 M
Debt 2020 3 801 M
Yield 2020 5,13%
P/E ratio 2020 30,3x
P/E ratio 2021 16,3x
EV / Sales2020 5,94x
EV / Sales2021 4,34x
Capitalization 39 870 M
Chart SANDS CHINA LTD.
Duration : Period :
Sands China Ltd. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SANDS CHINA LTD.
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 25
Average target price 5,84  $
Last Close Price 4,93  $
Spread / Highest target 41,7%
Spread / Average Target 18,4%
Spread / Lowest Target 1,09%
EPS Revisions
Managers
NameTitle
Sheldon Gary Adelson Chairman & Chief Executive Officer
Ying Wai Wong President & Executive Director
Kwan Lock Chum Chief Operating Officer
Min Qi Sun Chief Financial Officer & Senior Vice President
Victor Patrick Hoog Antink Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
SANDS CHINA LTD.0.26%39 864
GALAXY ENTERTAINMENT GROUP LIMITED-2.88%29 973
ARISTOCRAT LEISURE LIMITED11.17%15 451
WYNN MACAU, LIMITED-1.53%11 119
CAESARS ENTERTAINMENT CORPORATION3.09%9 520
FLUTTER ENTERTAINMENT PLC-0.32%9 020