Rumours that licence may be revoked send shares into a 15 percent downward spiral
The Hong Kong-based and China-focused online lottery provider 500.com suffered a 15 percent decline in its share price this week amid rumours that the Chinese government could revoke its the licence.
It was the biggest hammering the shares have taken in the past year, and took place despite, or perhaps as a result of, an emailed refutation put out by 500.com's CEO Man San Law, himself rumoured to be have been detained by Chinese authorities.
In his communication Law wrote: "The rumours that you have heard regarding the Chinese government's revocation of 500.com's license and that Mr. Man San Law has been detained by authorities are false and have conveniently spread during China's seven-day new year's holiday."
He went on to acknowledge that lottery sales were suspended for the Chinese New Year holidays in compliance with a general government requirement, but would restart once the holiday was over on February 25.
Online Casino News Courtesy of Infopowa