What happened
Shares of Wynn Resorts (WYNN -0.07%) jumped 14.9% in December, according to data from S&P Global Market Intelligence, following a positive development in the casino stock's key Macau market.
So what
To be sure, the bulk of Wynn's gains last month came after the People's Bank of China announced it would increase the daily limit individuals can wire from their accounts in the country to 80,000 yuan (or just over $11,400) -- a whopping 60% increase from the previous limit of 50,000 yuan. As fellow Fool Eric Volkman noted last month, the move will almost certainly increase gambling and spending habits in Macau, considering mainland Chinese citizens are easily the single largest group of visitors to the region.
IMAGE SOURCE: GETTY IMAGES.
The increased limits could serve as a tailwind to Wynn, which generated nearly 68% of its operating revenue in the Macau region last quarter. The company is also planning to build a new $2 billion expansion with construction starting in 2021, at its Macau-based Wynn Palace, dubbed The Crystal Pavilion complex, including two hotel towers, gardens, a performance space, and interactive art exhibits.
Now what
Even so, we may not see the impact immediately considering Macau casinos as a whole ended 2019 on a down note. But if growth resumes with the help of China's increased daily wire transfer limits and a broader economic rebound in the country, Wynn should be nicely poised to benefit.
