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Home›Macau›Credit Suisse notes bottoming out of market

Credit Suisse notes bottoming out of market

By -
Friday, March 4, 2016
99
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Credit Suisse has said that the concerns that China will face a debt crisis or a ‘hard landing’ are only “imaginary risks,” and that the world’s second largest economy’s high savings ratio and effective government control will prevent an economic catastrophe in the near future.
As cited in Dow Jones Institutional News, the company also believes that the failures of certain financial institutions and the Yuan’s market weakness are “genuine risks,” which could dampen economic growth. China’s credit-to-GDP ratio, which was 244 percent in mid-2015, is expected to surpass 300 percent before 2020.
In light of this, Credit Suisse said that it likes the Macau gaming sector, which showed signs of improvement in last month’s official figures, and some selective consumer and industrial stocks.
There’re signs Macau’s gambling market has reached a bottom as a rise in the number of mainland Chinese tourists over last month’s Lunar New Year holiday helped ease the industry’s 21-month slump. Gross gaming revenue fell 0.1 percent to MOP19.5 billion (USD2.4 billion) in February, the smallest decrease since the downturn began in June 2014

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