Gaming stocks in Hong Kong experienced a broad sell-off. Melco International Development (00200) fell over 6% to HK$4.53, while Wynn Macau (01128) dropped over 4% to HK$5.83. SJM Holdings (00880) declined 1.64% to HK$2.40, and MGM China (02282) was down 1.59% to HK$13.58.

The decline followed an announcement from Wynn Macau that its property EBITDA for the fourth quarter of 2025 decreased 7% year-on-year to HK$2.113 billion. A report from CLSA noted that while Wynn's quarterly results met the firm's expectations, they were approximately 10% below market consensus, impacted by lower win rates in both the VIP and mass market segments. The property EBITDA margin contracted by 3.6 percentage points year-on-year to 28%, which was in line with CLSA's forecast.

Separately, Melco International Development announced that its subsidiary, Melco Resorts & Entertainment, reported a 17% increase in adjusted EBITDA to US$1.4 billion for the previous year. A Morgan Stanley research report indicated that Macau's average daily gaming revenue during the first five days of the National Day Golden Week last year was approximately MOP 1.1 billion. Given that occupancy rates during the upcoming Chinese New Year holiday are expected to be similar, with average daily room rates about 25% higher, the brokerage anticipates gaming revenue for the holiday period to be comparable to, or even stronger than, last year's Golden Week. Based on higher occupancy rates, Morgan Stanley also expects post-holiday demand to persist longer, supporting its forecast for February's gross gaming revenue to grow 13% year-on-year.