Chinese gambling drives stocks at 50% growth rate

Macau – Though casino stocks have shown a phenomenal run-up, key indicators of Chinese economic hypergrowth are showing signs of weakening.

But Las Vegas Sands and Wynn Resorts are up 47% and 62% respectively in this former colony adjacent to Hong Kong, the only spot in mainland China where gambling is legal. Along with Hong Kong, Macau is now one of two special administrative regions of the People's Republic of China.

FedEx acknowledges air tonnage out of Hong Kong fell 9% during August. There has been a massive slowdown in Chinese consumption of iron ore, steel, copper and coal – something reflected in the 25% plunge in the Hang Seng, compared to an American decline in the S&P of only about 9%.

Meanwhile gambling topped the $3 billion mark for the month of August, up 57% from August, 2010. Macau is a hell town in the middle of a boom cycle that saw "pure play" on gambling growth in Las Vegas Sands' deriving more than 80% of its revenue from casinos in Macau and Singapore.