Chinese will travel, but Covid-19 raises questions on spending power

Covid 19

Mainland Chinese may still have a thirst for travel post the Covid-19 pandemic, but views are divided as to how much disposable income they may have to spend, especially in the region’s casinos. China’s economy recorded its first contraction in Q1, since it started publishing such figures in 1992, as the crisis shut down vast swathes of the economy. Although factories are now up and running, worse-than-expected April producer prices showed that the shutdowns now occurring in most of its export markets mean the road to recovery may be longer than initially anticipated. HSBC chief China economist Qu Hongbin told Bloomberg News in an interview that there is now a risk of deflation in China. While that in itself is a bad thing, it does give policymakers more room for stimulus measures, he argued, which may speed economic recovery. Still, views are mixed as to how the gaming industry will recover and...

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