He Chaoqiong does not liquidate MGM China shares
MGM China Vice Chairman Chao Qiong Ho is unlikely to significantly change her stake in the gaming company, although recent moves suggest otherwise.
Stanley Ho, the eldest daughter of Macau casino founder Stanley Ho, recently deposited her entire stake in MGM China (380 million shares to be exact) into the Hong Kong Stock Exchange's Central Clearing and Settlement System (CCASS). Central Clearing System is implemented by Hong Kong Securities Clearing Company Limited (Hong Kong Clearing Company) to improve the efficiency of large-scale transactions and shorten settlement time.
China Connect securities trading follows the settlement cycle of the mainland stock market, with stocks settled on T day and cash settled on T+1 day," according to data from Hong Kong Exchanges and Clearing." Hong Kong Stock Exchange (SEHK) The Exchange) submits detailed information on China Connect securities transactions in real time directly from its order delivery system, China Connect System (CSC), to the Central Clearing and Clearing System. HKSCC compares the preliminary settlement data files retrieved from China Clearing System with the Exchange’s transaction records. Final liquidation instructions will be provided to relevant participants shortly after 4:00 PM on T-day. "
Mr. Ho is also the managing director and 15% owner of MGM Grand, which holds the licenses for MGM China’s two integrated resorts in Macau.
MGM China questions measures
Multiple Asian media reported that Ms. Ho recently completed two transactions, one through BNP Paribas and the other through Standard Chartered, to transfer her stake in MGM China to CCDC. But MGM China said it was not directly involved in the transactions.
Instead, the MGM Cotai operator said the moves were part of a previous agreement between Ho and her bank. Mr. Ho, 61, raised $1.5 billion in MGM China's 2011 initial public offering (IPO). She is the largest single shareholder of the gaming company's stake and has no record of large stock sales.
While she holds a majority stake in MGM China, Ho began reducing her stake in MGM Resorts International (NYSE: MGM ) in 2019. Today, it holds only a fraction of its previously massive position.
Ho became the most significant MGM shareholder in 2016 when the Las Vegas-based gaming company increased its stake in MGM China to about 56%.
It’s not a good time for He Chaoqiong to sell
Even if the above-mentioned transfer of her MGM China shares to CCDC was a prelude to a sale, Ms. He may have made a mistake. That's because Macau casino stocks have plummeted recently. Earlier this month, shares of five of the six franchises (MGM China being the exception) fell to their lowest levels since early 2022.
This suggests that any investor reducing or eliminating such positions today may be selling "on the cheap". It could just be a coincidence, but Ms. Ho's record of selling MGM stock suggests she was rarely guilty of selling.
Additionally, Macau casino stocks are historically cheap, suggesting valuation risk has been removed from the equation.
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Source: www.casino.org
