Suncity suspends stock trading to stem ‘bleeding’

Hong Kong Stock Exchange registered Suncity Group Holdings Limited suspended stock trading in Hong Kong yesterday at 9 a.m. (opening time) to prevent its stock value from plummeting further.
This is the second time that the company suspended stock trading this week – the first being on Monday. Trading resumed on Tuesday, when the stock’s value had already plummeted by 48%, its lowest point this year with a value of HKD0.132 per stock.
In March this year Suncity’s stocks reached a trade value of HKD0.780 – almost 6 times the current value.
A company statement explained the suspension of trade as a temporary measure while they wait for a board decision concerning VIP business carried out in Macau by one of its parent companies.
On Tuesday evening, following the announcement of the closure of all the gaming-related operations, it was announced that the company would immediately cease salary payments for at least one-third of its staff, calculated to be about 3,000 people.
According to information collected by the Times yesterday from inside sources, the dismissal toll could be much higher than initially reported. Several operations from the group unrelated to gaming may also be targeted with closures, with staff having been informed that they would not return to work.
The Times’ source added that a portion of these staff members had already been in an unpaid leave and/or temporary layoff situation for several weeks, following the lack of economic activity of the company.

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