Another performance detractor was Galaxy Entertainment Group (HKSE:00027), a Macau casino holding. While we believe this company has the best property to attract Chinese tourists, its growth has been limited for the near term given a lack of new capacity. We remain constructive on this company and believe that growth will resume when it completes its expansion plans next year. Additionally, we expect that increased clarity on the status of Macau's gaming license renewals—all six gaming operator licenses are currently due to expire in 2022—would bode well for companies in this sector.
From Matthews China Fund (Trades, Portfolio)'s first-quarter 2019 shareholder letter.
