Slow Growth in China Bad for Gaming Stocks

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Slower growth expectations in China aren't a good sign for gaming companies, and that's why stocks were jolted in trading early this week. The big challenge is that more capacity is hitting Macau for the next few years, and the area needs growth to justify the massive investment companies are making. China's growth has fueled a growing middle class and the ability for more gamblers to take their bets to Macau. It's inevitable that China's overall growth and Macau's growth are linked, and that's worth watching if you're invested in gaming stocks.

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The article Slow Growth in China Bad for Gaming Stocks originally appeared on Fool.com.

Fool contributor Travis Hoium manages an account that owns shares of Wynn Resorts. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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