Goldman sees silver lining for casinos hit by typhoon

Troops from China’s People’s Liberation Army helped with cleanup efforts

Macau’s pummelling by typhoons makes it unlikely China’s government will adopt a tougher stance toward the city, according to Goldman Sachs Group Inc.

While investors are likely speculating about political implications from China’s forthcoming Communist Party congress, there is “little likelihood for drastic policy change targeted at Macau” while the city is still clearing up, Goldman analysts led by Simon Cheung wrote in a note, reiterating a buy rating on some casino stocks.

Concern over a deeper crackdown on corruption and curbs on capital outflows have weighed on the equities in recent years.

Credit Suisse Group AG also reiterated its bullish view of Macau, helping ensure casino stocks were among the few gainers on Hong Kong’s benchmark yesterday.

Officials said Typhoon Hato was the strongest storm to hit Macau in 53 years. It lashed the city with heavy winds and rain that flooded large parts of the city, knocked out power and water supplies and left more than 240 people injured and 10 deaths. Casinos were forced to run on backup generators.

In an unprecedented move, the Chief Executive, Chui Sai On, asked troops from China’s People’s Liberation Army, who normally don’t leave their garrison to help with cleanup efforts. The troops, along with cleanup crews and volunteers, collected 7,300 metric tons of trash left behind by the storm. MDT/Agencies