Shares in casino operators plunged on Friday following a report that gambling haven Macau is set to limit ATM withdrawals by China UnionPay customers, raising fears of a new front in China’s battle against capital flight.
China has moved in recent weeks to staunch capital gushing from the mainland, including tightening scrutiny of cross-border investment by Chinese companies and banning the purchase of certain insurance products. In some cases, repatriation of profits by foreign companies has slowed.
A report by Hong Kong’s South China Morning Post said the daily withdrawal limit for ATM withdrawals in Macau by customers of China UnionPay, China’s sole clearing house for bank card transactions, would be cut to 5,000 patacas ($625.89) from 10,000 patacas, effective from Saturday.