China Watch Blog has learnt that Sun Hung Kai Properties Ltd plunged on March 30 – the most in 14 years and lost US$4.9 billion of market value after anti-graft investigators arrested the billionaire brothers who run Hong Kong’s biggest developer.
Co-chairmen Thomas and Raymond Kwok were detained by the Independent Commission Against Corruption, Sun Hung Kai said on Thursday. Rafael Hui, a former No. 2 official in the government, was also arrested on March 29, a source said.
The arrests mark one of the highest-level investigations in the ICAC’s 38-year history.
Sun Hung Kai plunged 13 percent, the most since January 1998, to close at HK$96.50 (US$12.43) in Hong Kong on Mar 30 after a suspension on Thursday. The stock has dropped 17 percent since the company said on March 19 that Executive Director Thomas Chan Kui-Yuen was arrested by the ICAC.
Citigroup Inc and Barclays Plc cut their ratings on the developer’s stock.
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