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The highway guide to the Umbrella Revolution of 2014
What's going on in HK? Here is our quick illustrated guide. (29-Sep-2014)

What do investors want? Views from an activist investor
These are the slides from a presentation by David Webb to investor relations professionals in HK today at the National Investor Relations Institute (NIRI, USA) "Wisdom Roadshow" hosted by IPREO. (26-Sep-2014)

Fixing the Small House Policy
We look at a recent court case which again highlights the rampant abuse of the Small House Policy for the New Territories. We propose a return to the original policy intent, creating an internal market for indigenous housing, together with a voluntary, market-based scheme to surrender the claims of indigenous men and their under-age and unborn male descendants. (9-Sep-2014)

HKT's abuse of ID numbers
Your ID number is not a password; so many firms and people know your identity - but dominant land-line provider HKT Ltd (6823) is using it that way to access your phone bills. HKT: Here to Cut Corners. (9-Sep-2014)

PCPD not answering our calls
After blogging about parts of an "intemperate grilling" from the Commerce and Economic Development Bureau over his call for a do-not-call person-to-person register, igniting public debate, the Privacy Commissioner has now refused our request, under the Code on Access to Information, for copies of the CEDB's letter and his reply letter, citing a lack of public interest. He can't have it both ways. (5-Sep-2014)

ISS recommends against Lerado (1225) sale
Webb-site has learned that ISS, the leading proxy advisory firm, has joined us in recommending voting against the sale of Lerado's core business, due to the excessive capital retention. (4-Sep-2014)

Soon, we can all be rubber stamps
Our take on yesterday's command from Beijing. (1-Sep-2014)

Veto Lerado (1225) sale until they pay up
We call on Lerado shareholders to veto the sale of its core business unless and until the board increased the proposed special dividend from $0.30 to at least HK$1 per share. We would rather hold a stake in a real business than get trapped in another shell trading at a discount to its net cash. Management only owns 33%, so they had better listen to investors and revise the plan. David Webb holds just under 8%, and we need your support. (1-Sep-2014)

Guangdong Yueyun bonus share vetoed
H-share holders have narrowly vetoed a bonus share issue by Guangdong Yueyun (3399) which would have knocked 40% off the dividend in additional tax and destroyed 1.5% of value for H-share investors. This is the board's idea of "providing returns to shareholders". (30-Jun-2014)

Minsheng tax grab, HKEx conflicts
Minsheng Bank (1988) just grabbed RMB115.6m from H-share holders and paid it to the Government with no good reason. We explain why bonus share issues by PRC issuers are not just silly but damaging to shareholder value. We also look at the conflict of interest for HKEx, which recently signed a strategic MoU with Minsheng and is pursuing relationships with other banks while acting as their listing regulator. The SFC should now take over regulation of these listings, but has declined to do so. (30-Jun-2014)

The right to remember
In the wake of ECJ's Google v Spain ruling, we publish a letter from the UK Information Commissioner regarding the sanctity of newspaper archives, and then look at the unintended and dangerous consequences of the ECJ's ruling. You really don't have a right to make other people forget, and you do have a right to remember. (20-Jun-2014)

Citibank's response on vote-stuffing
Citibank has responded in a most disappointing way to yesterday's article, in essence shrugging its corporate shoulders and claiming to be just following instructions. That is not an excuse in the money-laundering arena, and it won't wash in the corporate governance arena either. (19-Jun-2014)

Citibank vote-stuffing in HK AGMs
Webb-site has discovered that Citibank has been tilting the outcome of shareholder meetings in HK by giving blank proxies to management-nominated voters on behalf of Taiwan Depositary Receipts for which it has no voting instructions. We call on Citibank to stop this outrageous practice and on the HKMA and SFC to ensure that the HK branch does so. (18-Jun-2014)

Yorkey (2788) AGM recording
Note: in this AGM, David Webb incorrectly stated that the threshold to requisition a general meeting is 25%; in fact Yorkey's articles have a threshold of 10%. He again called for the board to make a special distribution of the surplus cash, failing which he would take steps to try to change the board to one which would do the job. (11-Jun-2014)

Other news

Dragonite (0329) subscribes 4.7% of Freeman Corp Ltd for HK$156.75m. Dragonite announcement
Company announcement, 26-Sep-2014
Another deal in the Chung Nam Network. This follows Dragonite's subscription 10 days ago for 2.52% of HEC Capital Ltd for HK$137.5m. The other shareholders of Freeman Corp Ltd include Freeman Financial (0279), iCube (0139) and Willie (0273).

iCube (0139) subscribes 2.78% of Freeman Corp Ltd for HK$88m and 1.56% of HEC Capital Ltd for HK$102m
Company announcement, 21-Sep-2014
In a follow-up to the Freeman Financial (0279) announcement on Friday, it emerges that iCube has also subscribed for 1.56% of unlisted HEC Capital Ltd. All of these are in what we call the "Chung Nam Network". So that is a total network investment of $190m.

Rafael Hui admits in corruption trial that he evaded taxes on 'fees'. IRO s82
South China Morning Post, 20-Sep-2014
SCMP does not mention that under s82 of the Inland Revenue Ordinance, any person who wilfully with intent to evade tax omits from a return any sum which should be included is liable on indictment to up to 3 years in jail and a fine of up to 3x the tax evaded. In Mr Hui's case, the fine would not have much effect because he is already bankrupt - but he appears to have opened himself up to another prosecution.

iCube (0139) subscribes 2.8% of Freeman Corp Ltd for HK$88m promissory note
Company announcement, 19-Sep-2014
As a result, the unlisted Freeman Corp Ltd will be 69.7% owned by Freeman Financial (0279), 27.5% owned by Willie (0273) and 2.8% owned by iCube (0139). Freeman Financial owns 5.8% of iCube. All are in what we call the "Chung Nam Network".

Webb keynote: Challenges for China - beyond minority listings of SOEs. Slides
YouTube, 19-Sep-2014
At the Centre for Accounting Research & Education (CARE) Conference, Hong Kong Polytechnic, 10-Jun-2014

Dragonite (0329) subscribes 2.52% of HEC Capital Ltd for HK$137.5m
Company announcement, 16-Sep-2014
Dragonite and HEC Capital are members of what we call the "Chung Nam Network". On 21-Jan-2014, Dragonite sold the basement of China United Centre to a company that is or was owned by HEC Capital for HK$140m, almost the same amount it has injected into HEC Capital in today's deal.

SFC suspends Eric Shum Kam Chi, ex-SHK, for 3 years over Sino-Life (8296) IPO sponsorship failures
SFC, 16-Sep-2014
According to Webb-site Total Returns, the stock has lost 77.5% since its first day of trading on 9-Sep-2009 (9-9-9). In search of a more propitious name, we suggest the funeral services company renames itself Sino-Death. In Jan-2014, Sun Hung Kai was fined HK$12m and suspended from corporate finance advisory services for 1 year.

Previously on Webb-site.com
Check out our full list of articles in the archive, since our launch in 1998.

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Important notice: All material on this site, except where otherwise accredited, is copyright to Webb-site.com. Media are welcome to quote from articles on this site, provided that such quotation is attributed to Webb-site.com. The information in this site should not be relied upon by any person in making any investment decision. No responsibility or liability is accepted by Webb-site.com or any person related to it for any loss arising from or in reliance upon the whole or any part of the contents of this site. Persons who are in any doubt about an investment or potential investment in a security should take professional advice before making their decisions in relation to any investment. From time to time parties associated with Webb-site.com may own long or short positions in securities issued by or related to companies or governments on which we comment.

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Today's birthdays, 1 October
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