China’s moves to stimulate its economy have renewed optimism about Macau gaming revenue in some quarters. Beijing’s decision to make tax cuts and ease credit underscores that China’s economic slowdown is real and far reaching. Macau’s two biggest risks remain mainland China further restricting people or money crossing the border into the city. Slowing economic growth is a third threat, and the stimulus moves underscore it’s quite real.

At the National People’s Congress meeting that ended March 15, China’s Prime Minister Li Keqiang set an economic growth target of 6-to-6.5 percent, which would be the mainland’s slowest growth in three decades, albeit just below the 6.6 percent of 2018. Li warned that China faces a “graver and more complicated environment” with greater risks, as he announced cuts in the value added tax from 16 percent to 13 percent and reiterated commitments to make it easier for banks to lend.