Founder Of Macau's Top Junket Operator To Resign

Shares of Macau junket operator, Suncity Group, lost nearly half their value in resumed trade on Tuesday after its CEO, Alvin Chau, was arrested on Sunday along with 10 other people. The company said he intends to resign.

Chau, the founder of Suncity, has been remanded in prison in the SAR over alleged links to cross-border gambling.

Authorities in Wenzhou, in eastern Zhejiang province, have also issued an arrest warrant for him. They accuse Chau of operating gaming activities on the mainland where gambling is illegal.

Part of the Macau investigation is reported to involve a Russian resort close to China's northeast border, which is controlled by Hong Kong-listed Summit Ascent Holdings, of which Suncity is the controlling shareholder.

Late on Monday, Suncity Group issued a statement denying allegations that the resort had been involved in soliciting customers on the mainland.

It also said Suncity's operations would not be impacted in the event that it ceased to have Chau's support.

Macau's prosecutor's office said on Monday that the group was also suspected to have used the world's biggest gambling hub as a base for an illegal "live web betting platform" in the Philippines that attracted mainland punters. (Reuters)