The Macau Metro Monitor, October 15th 2010
MACAU RESORT BATTLE ESCALATES WSJ
A unit of New Cotai filed suit against S'pore developer CapitaLand Ltd, eSun Holdings Ltd. and their unit East Asia Satellite Television Ltd., of breach of contract, inducement of those breaches and unlawful conspiracy over their deal concerning Macao Studio City. "We are disappointed that these legal proceedings had to be initiated," said New Cotai Chief Executive David Friedman. "However, after making exhaustive efforts to resolve the situation amicably, we believe we had no choice but to take this step to protect our investment and Macao Studio City." CapitaLand—which has an effective 20% interest in the project—said on Thursday that "eSun has affirmed an indemnity in favor of CapitaLand in respect of any losses which may be suffered by CapitaLand in any legal proceedings" brought by New Cotai regarding the Macao Studio City project.
WHEN WILL IT ALL POP? Intelligence Macau
IM believes that the credit bubble in China may pose a risk to the Macau market as bank loans may bust and consumer credit may spiral out of control. But obviously the question is when will that fear become a reality - if ever? No one knows but as long as state-run banks continue to pump liquidity into the economy and the bank recapitalizations remain at a slow, steady pace, the VIP and Mass sectors will continue to be strong.
SEVERAL PROVINCES IN CHINA HAVE RELAXED INDEPENDENT TRAVEL RESTRICTIONS TO MACAU Macau Daily News
The surge in visitor arrivals to Macau may be due to the easing of independent travel restrictions in China. Beijing has already shortened the time for visa application process from 1 month down to between 7-10 days since last month. Other provinces have also shown signs of speeding up in terms of the application process.
PRIVATE HOME SALES SLOWED IN SEPTEMBER Channel News Asia
S'pore's Urban Redevelopment Authority (URA) showed that 911 private homes were sold in September, a 27% MoM drop. The 911 units sold were also the second lowest monthly sales this year, behind June's figure of 847 units. The drop follows the latest round of cooling measures from the S'pore govt that took effect on 30 August.