Hong Kong Exchange delists LET Group and Summit Ascent over governance concerns

Corporate governance concerns and regulatory scrutiny have culminated in the Hong Kong Stock Exchange’s decision to delist LET Group Holdings Ltd. and Summit Ascent Holdings Ltd., following suspended trading since early 2024 and unresolved questions over management integrity.

The Hong Kong Stock Exchange (HKEX) Listing Committee confirmed that LET Group and Summit Ascent will be delisted on September 1. The final day of trading for both companies is set for August 29. In separate filings, the companies said they will not seek a review of the ruling.

Shares of both firms have been suspended since February 2024 upon order of the Securities and Futures Commission (SFC) following concerns that an attempt to sell the Tigre de Cristal resort stake lacked required shareholder approval. The exchange required them to meet resumption guidance by July 10, 2025, but the companies were unable to fulfill the conditions in full.

According to recent filings, both companies said they were awaiting responses on compliance and suitability proposals and integrity guidance. The HKEX said both firms were required to “demonstrate that there is no reasonable regulatory concern about the integrity or character of the group’s management and/or the integrity or character of any persons with substantial influence over the group’s management and operations, which may pose a risk to investors and damage market confidence.”

Both companies noted that share certificates will remain valid, but there will no longer be a public market for trading. They advised shareholders and potential investors to exercise caution and seek professional advice.

Governance issues and regulatory action

Corporate governance of both firms has been under scrutiny since 2024. A series of board resignations followed an attempt to sell Summit Ascent’s stake in Tigre de Cristal, a casino resort in Russia, without shareholder approval.

The SFC filed legal proceedings in 2024 against Andrew Lo Kai Bong, the chairman and controlling shareholder of the companies, alleging misconduct and seeking measures to protect minority investors. No further public update has been provided by the regulator since September last year.

Although LET Group and Summit Ascent reconstituted their boards and published overdue financial statements, concerns over transparency and management conduct persisted. The exchange determined that the requirements for reinstatement were not met.

Manila integrated resort project

LET Group is the indirect parent of Suntrust Resort Holdings Inc., which is developing the LETX Resort at Westside City in Manila. The project is valued at $1.25 billion and includes a hotel and casino within the Entertainment City district.

Travellers International Hotel Group Inc., operator of Newport World Resorts, is reportedly preparing to take a majority stake in the LETX project. Travellers and its related entities would provide financial and operational support for the construction and later assume management of the resort. LET Group is expected to retain a minority interest through Suntrust.

In a July update, LET Group stated that it anticipated securing sufficient funds within 12 months to support the project’s construction.

Tigre de Cristal operations

Summit Ascent owns and operates Tigre de Cristal in Primorye, near Vladivostok. The property reported a return to profit in 2024, supported by demand from the Russian domestic market.

The company had previously considered divesting its stake in the casino, a move that contributed to board-level disputes and regulatory scrutiny. The casino remains operational, and its long-term direction is uncertain with the group’s restructuring and withdrawal from the Hong Kong market.

Following withdrawal from the exchange, the companies will no longer be subject to listing rules, including regular financial reporting and governance or disclosure requirements.