Goldman Sachs says that VIP activity in the second quarter of 2019 has been more resilient that previously thought.
The investment bank said that Macau’s VIP gaming market has not been hit harder than mass-market play by the ongoing trade tensions between the world’s two largest economies.
Analysts have long feared that Macau, with its externally- exposed economy wedged between that of China and the U.S., would feel the impact of worsening trade ties and a subsequent slowing of the Chinese economy. They argued that the VIP segment of Macau’s gambling sector would be hardest hit, especially if the essential credit lines that facilitate their play dry up.
Goldman Sachs wrote in a note yesterday that it expects both VIP and mass flat or marginally down in the second quarter compared to the first, adding that neither segment has been hit harder than the other. DB
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