UPDATE 1-Hundreds protest in Macau on handover anniversary

(Recasts with protest, adds paragraphs 1-3, 5, 13)

By Stefanie McIntyre

MACAU, Dec 20 (Reuters) - About a thousand people marched
through Macau's streets on Sunday, urging the government to
fight corruption and grant them more political freedom, as the
territory marked its 10th anniversary under Chinese rule.

The protesters waved banners that called for universal
suffrage in 2019 and chanted anti-corruption slogans hours
after Chinese President Hu Jintao attended the swearing-in of
the territory's new chief executive, Fernando Chui.

"Now is the time to start again the timetable for
democratic development for Macau," Antonio Ng, a Macau
legislator and one of the key organisers of the protest, told
Reuters.

Chui earlier swore in his new cabinet, pledging to
diversify the economy, heavily reliant on its gaming industry,
into sectors such as logistics over the next five years.
(For a related factbox on Macau and Fernando Chui, please
click on [ID:nTOE5BJ006])

Chui was hand-picked by the Chinese government to lead
Macau, unlike Hong Kong, which held a contested chief executive
election in 2007 and is inching towards universal suffrage in
2017.

Chinese leaders, who face challenges in corporate
governance in Macau, also pledged better regulation of gambling
in the territory, whose $15 billion casino industry overtook
that of Las Vegas in late 2006. [ID:nTOE5BF00Y]

"Over the next five years, we shall actively develop the
appropriate diversification of the economy," Chui said in a
speech after being sworn in.

"While enhancing regulations on the gaming industry, we
will also put emphasis on the convention, exhibition, logistics
and cultural industries. We will also focus on the upgrade and
transformation of traditional industries."

Hu told the ceremony he wanted to encourage Macau to work
with China's Pearl Delta region, which encompasses Guangdong
province, to develop its economy further.

Despite its casino industry boom, analysts say Macau is
beset by corruption, organised criminal gangs and North Korean
money laundering that could hamper its development.

Returned to Chinese rule after being a Portuguese colony
for 442 years, Macau faces stiff competition in the gaming
industry from markets like Singapore and Malaysia.

Macau's gaming industry has been dominated by casino
magnate Stanley Ho and his family, who own SJM Holdings
(0880.HK), Melco International Development (0200.HK) and Sands
China (1928.HK).

Ho, 88, was at Sunday's ceremony, seen publicly for the
first time since he was hospitalised in early August, sparking
market concerns over his health.

Other international names with a strong presence include
Wynn Resorts (WYNN.O) and the Las Vegas Sands (LVS.N).
(Additional reporting by Gary Ling in MACAU and Lee Chyen Yee
in HONG KONG; Editing by Paul Tait)