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Suncity shares in Macau have more than tripled since HONG KONG became the new majority shareholder

Image: Reuters Berita 24 English - On Thursday, Suncity Group Holdings Ltd. shares more than tripled as trading resumed for the first time ...


Image: Reuters

Berita 24 English - On Thursday, Suncity Group Holdings Ltd. shares more than tripled as trading resumed for the first time in almost two months. The company also announced that Executive Director Andrew Lo had become the company's new majority shareholder.

The company was worth about $130 million at 0201 GMT after the shares had given up part of their gains but were still up 182 percent.

Alvin Chau, the former chairman of the business, is scheduled to go on trial in September in Macau, the world's largest gaming market, on allegations that include money laundering and unlawful gambling. Suncity has denied wrongdoing, while Chau has been imprisoned pending his trial.

An array of setbacks, including Chau's arrest last year and the demise of Macau's VIP gambling business, have affected Suncity, a Macau junket operator that brings in high rollers to gamble in the city.

Beijing has cracked down on the shadowy junket industry and covert banking routes in an effort to stop unlawful financial outflows from the Chinese mainland.

A new regulation prohibiting designated junket rooms in casinos is an effort by the Macau government to limit the influence of the junket operators. Analysts have predicted that in the future, their power would probably become much more diminished.


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