Stocks of Hong Kong-listed casinos dropped Monday after a renewed outbreak of coronavirus.

Sands China SCHYY –5.65% (ticker: 1928.HK), the developer of casinos in Macau and a subsidiary of Las Vegas Sands LVS –1.49% (LVS), fell 7.8%. Galaxy Entertainment Group 27 –5.77% (27.HK) declined 5.8%. The broader Hang Seng index slipped 1.9%.

U.S.-listed casino stocks related to Macau dropped in premarket trading as well. Wynn Resorts WYNN –2.60% (WYNN) slipped 3.5%, Las Vegas Sands fell 3%, and Melco Resorts & Entertainment MLCO –2.75% (MLCO) declined 3.1%.

China reported Monday 26,000 daily cases of Covid-19, the most in seven months and the sixth consecutive day in which the count has exceeded 20,000. Two deaths from the virus were recorded in Beijing.

The world’s second-biggest economy is still being held back by strict lockdowns to contain the spread of the disease. Growth significantly will undershoot the government’s target as restrictions on movement and social interaction weigh on activity.

The share moves today roll back recent optimism that China’s Covid policies would soon change, allowing the country to open up. The southern manufacturing hub of Guangdong has been hardest hit by the recent outbreak. Authorities have ordered a lockdown of the Baiyun district for five days.

China has had to stick to its zero-Covid policies because the homegrown vaccines it insists on using have been relatively ineffective. There has been some speculation that the country might start using a BioNTech (ticker: BNTX) vaccine, at least for foreign residents, though nothing has been confirmed.

Shen Hongbing, the deputy director of China’s CDC, last week said that the government is considering “the safety, effectiveness, accessibility, and affordability of vaccines before they are chosen.”

Write to brian.swint@barrons.com