Sun Hung Kai’s Two Co-Chairmen Report to ICAC on Graft Probe

Sun Hung Kai Properties Ltd. (16)’s co- chairmen Raymond and Thomas Kwok today reported to Hong Kong’s anti-corruption body, almost two months since they were arrested as part of a bribery investigation.

The brothers arrived at the offices of the Independent Commission Against Corruption this morning and left about half an hour later, Cable TV reported. As of May 27, no charges have been laid by the body, also known as ICAC.

Hong Kong’s anti-corruption commission arrested the co- chairmen and Rafael Hui, formerly the city’s No. 2 official, in March in one of the highest-level investigations conducted in the body’s 38-year history. The probe has increased public concern about real estate policies implemented by the government as property price gains make Hong Kong the world’s most expensive place to own a home.

Sun Hung Kai, Hong Kong’s biggest developer, has fallen 21 percent in Hong Kong trading since the March 29 arrests, compared with a 11 percent drop in the Hang Seng Property Index. (HSP) The shares gained 0.5 percent to HK$88.20 at the close.

Thomas and Raymond Kwok were arrested in connection with a probe into offenses suspected to have been committed under the Prevention of Bribery Ordinance, the company said March 29. Walter Kwok, their brother and former chairman of the company, was also arrested and later released by the agency, Sun Hung Kai said on May 4.

Hui also reported to the ICAC earlier today, Cable TV said.

Sun Hung Kai has been “advised by lawyers” not to comment on the investigation, spokeswoman Brenda Wong said in an e- mailed reply. Cecily Chik, a spokeswoman for ICAC, declined to comment.

The company said March 19 that Executive Director Thomas Chan Kui-Yuen was arrested by the ICAC. Chan and Walter Kwok also reported to the ICAC today, Cable TV said.

Brokerages including Citigroup Inc. and Barclays Plc have cut their recommendations on Sun Hung Kai’s stock since the Kwoks’ arrest, while Goldman Sachs Group Inc. suspended its ratings.

To contact the reporter on this story: Kelvin Wong in Hong Kong at kwong40@bloomberg.net

To contact the editors responsible for this story: Andreea Papuc at apapuc1@bloomberg.net; Hwee Ann Tan at hatan@bloomberg.net

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