Macau casino operator MGM China Holdings Ltd., part of U.S.-based gaming giant MGM Resorts International, will be removed from the MSCI Hong Kong Index on November 26. No reason was given for the removal, which was part of MSCI’s semi-annual index review for its MSCI equity indexes. But there has been speculation that the removal will make way for Chinese ecommerce giant Alibaba. The company is enlisting in Hong Kong market with $11 billion.
No other gaming stocks were removed from the benchmarking platform, reported GGRAsia. Galaxy Entertainment Holdings, Sands China, Melco Resorts and Wynn Macau are still in the gauge. The four companies have a combined 6.65 percent on the MSCI Hong Kong Index. Casino.org reported that the shares of MGM China may find a new home in Macau.
MGM China operates MGM Macau and MGM Cotai in Macau. Its EBITDA for the third quarter grew 38.6 percent to about HKD1.55 billion (US$197.6 million) year on year.
