Shares of gambling group Suncity suspended amid arrests in Macau (updated)

LET group

29/11/2021 02:17

(Adds casino stocks falling, details)
    HONG KONG, Nov 29 (Reuters) - Shares in gambling group
Suncity Group Holdings  1383.HK  were suspended from trade on
Monday with its chief executive believed to be among 11 people
arrested by Macau authorities over alleged links to cross-border
gambling and money laundering.
    Macau authorities said police were questioning Alvin Chau on
Saturday after a Chinese city issued an arrest warrant for the
mogul, accusing him of operating gambling activities in mainland
China.
    The South China Morning Post reported that Macau police said
on Sunday a 47-year-old businessman surnamed Chau was among
those arrested.  urn:newsml:reuters.com:*:nL1N2SJ08Z
    Hong Kong-listed Suncity Group Holdings operates gambling
rooms across Asia. Chau is also founder of a separate junket
operator, which is also called Suncity. Junket operators are
go-betweens who bring high rollers to play at casinos, extending
them credit and collecting on their debts.
    Shares of Macau casino operators slid early on Monday, with
Wynn Macau  1128.HK  down more than 10%, Sands China  1928.HK 
falling more than 7% and MGM China  2282.HK  dropping over 6%.  
    Casino gambling is illegal in China outside Macau, the
world's largest gambling hub.
    Authorities in the eastern Chinese city of Wenzhou said on
Friday an investigation had found Chau formed a junket agent
network in the mainland to help citizens engage in offshore and
cross-border gambling activities.
    Chau also set up an asset management company in the mainland
to help gamblers to make cross-border fund transfers, the
Wenzhou City Public Security Bureau in the coastal city in
Zhejiang province said on its Weibo account.  urn:newsml:reuters.com:*:nL1N2SI03L
    Suncity could not be reached for comment. Shares of the
company last closed at HK$0.255. 
    Chau is also a controlling shareholder in Sun Entertainment
Group Ltd  8082.HK , a film production and cremation services
firm, whose shares plunged 65% early on Monday. 
    Sun Entertainment said in a Sunday stock exchange filing its
board had noted news coverage about the investigations in
Wenzhou and Macau.
    "The Board wishes to emphasise that the news coverage is
relating to the personal affairs of Mr Chau. The Board is of the
view that the incident does not have any material impact on the
financial position, business nor operation of the group," the
filing said.

 (Reporting by Anne Marie Roantree; Editing by Kim Coghill and
Edwina Gibbs)
 ((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters
Messaging: annemarie.roantree.thomsonreuters.com@reuters.net))