HK Stock Market Move | MGM China (02282) rose more than 5% in early trading, with reports suggesting the company is seeking a $2 billion syndicated loan and Citigroup expects to pay its final interest in mid-March.

MGM CHINA (02282) rose more than 5% in early trading, up 3.98% to HKD 10.96, with a trading volume of HKD 83.033 million. According to Bloomberg, MGM CHINA is in talks with dozens of banks to seek a syndicated loan of about USD 2 billion, with a term of five years and denominated in Hong Kong dollars. The funds raised will be used for refinancing. MGM CHINA is also considering expanding its Macau casino resort to attract customers beyond traditional gamblers. A research report from Lyon stated that MGM CHINA's property EBITDA in the fourth quarter of last year increased by 7% to HKD 2.126 billion, exceeding market and the bank's expectations by about 4% to 5%. The market share of casino revenue remained stable at 15.5%, while the EBITDA profit margin slightly decreased by 0.5 percentage point to 26.8%. Citigroup forecasts that the company will pay out dividends in mid-March, maintaining a 50% payout ratio, implying a dividend yield of about 6%, which can provide protection for investors in the short-term.