Junket HK listing rejected

The Macau junket operator Iao Kun Group Holding Co Ltd., which is currently listed on the NASDAQ Stock Market in the United States, has had its listing application in Hong Kong denied.
A Reuters report suggested that the Hong Kong Stock Exchange rejected Iao Kun’s application due to “overall market conditions and the near-term industrial outlook in Macau”. According to the company’s website, Iao Kun is currently participating in the promotion of five major luxury VIP gaming facilities in Macau at venues such as Galaxy, StarWorld, Sands Cotai Central, City of Dreams and Le Royal Arc. Following the eight-month consecutive drop of Macau’s gaming revenue and the mainland Chinese government’s tough crackdown on corruption, analysts were pessimistic about the short-term prospects of Macau’s gaming industry. “With the larger junkets now facing increasing sector pressures, we believe it is increasingly likely that ancillary non-gaming services will be scaled back or terminated,” Daiwa Securities analyst Jamie Soo said in Hong Kong. This means that other non-gaming sectors will take a hit from the revenue slump as well.