Credit Suisse analyst Kenneth Fong sees “light at the end of the tunnel” for the Macau gaming sector with risk/reward profiles becoming more favorable. This is due to “less-than-feared” regulations, as discussions with industry participants offer insights that the government’s proposed gaming law may be less stringent than expected, Fong told investors in a research note on Wednesday night. In addition, the analyst believes the expected Hong King quarantine-free border reopening with Macau will “provide meaningful upside” for current gaming revenue forecasts. Pent-up demand from Hong Kong and travelling Chinese is likely to generate 40%-50% incremental revenue for Macau’s current gross gaming revenue, Fong estimates. The analyst upgraded Sands China (SCHYY), SJM Holdings (SJMHY), Wynn Macau (WYNMF), Galaxy Entertainment (GXYEF), Melco Resorts & Entertainment (MLCO), Melco International (MDEVF) and MGM China (MCHVF) to Outperform. He also upgraded Studio City (MSC) to Neutral from Underperform. Fong’s top pick is Sands China.