Macau's GGR Performance: Macau's January Gross Gaming Revenue (GGR) reached MOP22.633 billion, reflecting a 24% year-over-year increase and surpassing market expectations by about 5%.

Stock Market Reactions: Major gaming companies like Sands China and Galaxy Entertainment saw their stock prices rise, with Sands China up 4.58% and Galaxy Entertainment up 0.95%, despite initial declines.

Market Forecasts: Analysts from Morgan Stanley and CLSA predict continued growth in Macau's GGR, with expectations of an 18% year-over-year increase in the first quarter and potential upside risks to annual growth forecasts.

Short Selling Data: The report includes short selling statistics for various companies, indicating varying levels of market confidence, with SJM Holdings showing a notably high short selling ratio of 29.649%.

JPMorgan's Optimism on Macau Gaming: JPMorgan expressed optimism about Macau's gaming industry, predicting an 'upcycle' driven by high-end demand and market liquidity, with GGR exceeding expectations but profit margins lagging behind.

Downgrades and Selective Strategy: The firm downgraded SJM Holdings from Neutral to Underweight and Melco Resorts from Overweight to Neutral, while maintaining Galaxy Entertainment as a top pick and advising caution on SJM Holdings and Melco International Development.

Profit Margin Concerns: Despite strong GGR growth, profit margins have not improved, attributed to higher operating expenses and a shift towards VIP gaming, with expectations of continued challenges in Q4 2025.

Market Sentiment and Short Selling: The report highlighted significant short selling activity in various stocks, indicating market skepticism, particularly towards SJM Holdings and Melco International Development.

Macau's GGR Performance: Macau's Gross Gaming Revenue (GGR) grew by 14.8% year-on-year to MOP20.9 billion in December 2025, recovering to 91.5% of December 2019 levels, although it fell short of the 18% growth expected by Bloomberg.

January 2026 Projections: CICC estimates that Macau's GGR will be between MOP20.2-21.7 billion in January 2026, indicating a daily average of MOP650-700 million, which represents a year-on-year increase of 10-19%, but remains 13-19% lower than January 2019 figures.

Stock Performance and Short Selling: The report highlights the stock performance of major gaming companies, with MGM CHINA, SANDS CHINA, and GALAXY ENT experiencing notable short selling activity, indicating market caution.

Licensing Fee Impact: Jefferies warns that a potential licensing fee hike for MGM CHINA could lead to a 10% drop in net profit for 2026, along with a possible review of dividend policies.

Market Performance: Hong Kong stock futures rose, with the HSI increasing by 0.45% to 25,751, and total half-day turnover reaching $96.537 billion.

IPO Activity: ILUVATAR COREX launched its IPO aiming to raise approximately $3.677 billion, while robotics company DOBOT proposed an IPO on the Shenzhen Stock Exchange.

Stock Movements: BIDU-SW surged 6.9% amid excitement over its Kunlun chip concept, while SMIC gained 3.2% after acquiring a stake in SMNC.

Declines in Other Stocks: POP MART's stock fell 5.2% due to a drop in second-hand blind box prices, and casino stocks like MELCO INT'L DEV and MGM CHINA experienced declines of 3.5% and 3.7%, respectively.

Market Performance: The HSI closed at 25,635, down 183 points (0.7%), with the HSCEI and HSTECH also experiencing declines. Total market turnover was HK$224.508 billion.

Fiscal Policy Update: China's Ministry of Finance plans to maintain a proactive fiscal policy next year, focusing on increased spending and support for the trade-in of old consumer goods.

Automotive Sector Gains: Notable gains were seen in the automotive sector, with companies like GEELY AUTO, LI AUTO-W, and NIO-SW reporting increases in stock prices, while BYD COMPANY emerged as the best-performing blue chip.

Gaming Sector Decline: MGM CHINA's stock plummeted over 17% following a downgrade by Morgan Stanley, impacting other gaming stocks like SANDS CHINA and WYNN MACAU, which also faced losses.