Sun Hung Kai exec arrested for suspected bribery

A senior executive at Sun Hung Kai Properties Ltd, Asia's largest property developer by market value, has been arrested by Hong Kong's anti-graft body over suspected bribery, in a rare case for a major property company in the city.

Thomas Chan Kui-yuen, a Sun Hung Kai executive director responsible for project planning and land acquisitions, was arrested by Hong Kong's Independent Commission against Corruption (ICAC) in relation to allegations of bribery, the company said. It did not give more details of the alleged offence.

A spokesman for Sun Hung Kai said yesterday that it had no further details to add. The ICAC declined to comment on an individual case.

Sun Hung Kai is run by brothers and joint chairmen Thomas and Raymond Kwok. The Kwoks are Hong Kong's second-richest family, according to Forbes magazine, with a net worth of $18.3 billion as of March.

The company has set up a special committee to handle the ICAC investigation, the developer said in a statement late Monday.

One analyst, who did not want to be identified given the sensitive nature of the allegations, said there had not been a similar case at a major Hong Kong developer since the analyst started covering the sector 15 years ago.

The Hongkong-based Standard newspaper reported that Chan was particularly active in assembling the land at Ma Wan, where the company is marketing its multitower Park Island apartment project, and at The Vineyard, a luxury low-rise development in rural Yuen Long.

Another analyst told Reuters Chan was particularly active in buying farmland from villagers in Hong Kong's New Territories.

The Hong Kong Economic Journal stated that the allegations stem from a land deal in 2003, citing sources with knowledge of the matter. It did not elaborate.

Shares of Sun Hung Kai, with a market value of around $39 billion, slipped 2.4 percent in afternoon trading yesterday.

Standard & Poor's Ratings Services said yesterday that the rating and outlook on Sun Hung Kai Properties Ltd are not immediately affected by the arrest of the company's executive director.