Recently, Xu Jiayin has encountered big trouble, although Evergrande has denied bankruptcy, but also admitted that Evergrande has encountered unprecedented difficulties. Evergrande's liquidity problem is still not well solved, and Evergrande Wealth has also had problems. Assets such as Evergrande Automobile, which Xu Jiayin wants to sell, have not yet progressed.
Xu Jiayin has indeed encountered big trouble, and the market value of Evergrande Automobile, China Evergrande and Evergrande Property is still declining. China Evergrande's market value has fallen below the 40 billion mark, compared with the peak of 2017 has evaporated more than 300 billion.
After Xu Jiayin, there is another giant who has also encountered big trouble recently, that is, the He Hongshen family. On the 15th, the total market value of Macau gaming stocks fell sharply, of which Sands China fell 31.25%, and the market value of Galaxy, Wynn, SJM, MGM and Melco International all evaporated by 20%.
Because Macau has already begun the public consultation stage of the gaming law, new bidding plans will soon be announced, and the licenses of various bookmakers will expire next year, which means that new bidding will begin soon.
Many people may not know that if bookmakers can't bid for a license next year, then they won't be able to continue to operate in Macau, and their current property in Macau will be automatically transferred to the authorities.
At the same time, the new regulations will be more stringent for the operation of bookmakers, and Macau will assume more responsibility for social work for bookmakers. Because of the impact of this matter, coupled with the uncertainty about the future of bookmakers, it triggered a sharp decline in all betting stocks, of which the Ho family undoubtedly lost the most.
The Ho family controlled three gaming companies, SJM, MGM and Melco International, and the market value of the company evaporated a lot in the past three days, and the Ho family has lost tens of billions of yuan. If you start from last year, then the loss is even greater.
SJM's market capitalization has gone from more than 50 billion yuan last year to less than 30 billion yuan now, Melco International's market value has changed from nearly 30 billion to 13 billion now, and MGM China's market value has also increased from more than 40 billion to its current early 20 billion. It can be said that the market value of the three companies is cut off, and the total market value of nearly 100 billion yuan has evaporated.
Since the outbreak of the epidemic, Macau's gaming revenue has been losing money. In the first half of this year, Macau's gaming revenue was HK$47.6 billion, although it increased by 46% over last year, but it was still much worse than in 2019. The revenue of Macau's gaming industry in the first half of 2019 was HK$145.1 billion.
The six major bookmakers have almost been losing money over the past 2 years. The current global epidemic is still obscure, although the vaccine has come out, but the latest data show that the number of global infections in a single day still exceeds 580,000.
In the next 2 years, the situation of the epidemic is still very difficult to say, in such a situation, the pressure on the Ho Family can be said to be very large. Recently, Hemihua also sold his shares in Sun City International for 70 million, which is a few hundred million yuan less than when he cashed out when the stock price was high. This matter can also show how bad the current situation is, and even the biggest stacked yard boy in Macao like Wash Mi Hua can't stand it.
For the Ho family, He Chaofeng now controls SJM, Ho Chao-qiong controls MGM, and He Youlong controls Melco International, all three of which have been losing money for the past two years. SJM's Shanghai Lisboa has invested more than 30 billion yuan in total, and it took 10 years to open, which must have been a very sensational opening. However, it is unexpected that due to the impact of the epidemic, the opening ceremony was quiet not long ago.
If under normal circumstances, He Chaoqiong definitely hopes to renew three gambling cards at the same time, but now she also has to think about a question, if all three gambling cards are successfully renewed at the same time, then what will happen next? If the pandemic continues like this, bookmakers will have to keep losing money.
With the strength of their family, a loss of two or three years can be withstood, if the loss of five or six consecutive years, then no one can stand it. So is He Chaoqiong going to consider giving up one or two gambling cards and going all out to keep the other one. This question is He Chaoqiong's biggest test.
After The death of He Hongshen, under the leadership of He Chaoqiong, their family was finally united, and it was originally the opportunity for the He Hongshen family to show their grand plans, but they encountered this problem.
Of course, the current situation also has the advantage that there may be fewer companies bidding next year. If it is a normal situation, the competition must be very fierce. In 2001, Macau bid for gambling cards, when only 3 cards attracted 18 companies, how many gambling cards will be issued this time is not known, but if there is no impact of the epidemic, it will definitely attract a lot of top consortiums to bid.
In the past decade, the Ho Family has been mired in infighting, which has seriously affected their development, and now their development is far inferior to that of Galaxy and Golden Sands. Therefore, next year's gambling card bidding, the possibility of Sands and Galaxy renewing the contract is very high, and He Chaoqiong wants to keep three gambling cards at the same time is very stressful.
But now, this may also be a good thing, the competition is getting smaller, He Chaoqiong can successfully keep the gambling card, but the difficulty is how to develop in the future after keeping it. If the pandemic is like this for a long time, how bookmakers will respond is a very big question. Even if the mainland can be controlled as much as possible, but it has always been like this abroad, it is also a big trouble, after all, Macao is now an international tourist city, and a lot of foreign tourists come to Macao every year to travel.
In recent years, He Chaoqiong is also increasing the business in the mainland, in fact, she is also prescient, because the Macau market is too small, and too dependent on the gaming industry, if the entire family treasure is bet on gambling, in fact, the risk is very large, when the situation is good, it is natural to make a lot of money. If, as it is now, the market is not good, then the pressure is very large.
On the other hand, He Chaoqiong is still smart, the only non-gaming asset of the Ho Hongshen family, Shun Tak Group, is in her hands alone, and Liang Anqi has worked hard to win the shares of SJM, and now may empty the bamboo basket.
Although the market value of Shun Tak Group is less than 10 billion, the company's net assets exceed 30 billion, and it has always been profitable, and it has always been a very good company. The company was controlled by He Chaoqiong from 20 years ago, and then He Hongshen's death was naturally controlled by He Chaoqiong. The next two years will be a critical period for the development of Macau's gaming industry.