Monday 27th February 2012

Dear Reader,

There are now 3 official candidates in the Chief Executive race. With 749 participants in our poll, you currently think the probability of Henry Tang winning is 37.2%, C Y Leung 39.9%, Albert Ho 4.1% and Someone Else 20.4%. We would have put Albert Ho's chance at slightly lower than that of winning the Mark Six jackpot, but that is your choice. Remember, we want to know what you think their chances are, not whom you want to win.

Please update your bets as events unfold. Your PIN is above.

Henry is clearly unaware that many HK residents work for much of their lives to pay for an apartment one third the size of his basement, a payment which includes the land premium the developer cartel paid to the Government - and he paid no such premium for the basement, let alone rates.

As for Donald Tsang: we never thought of him as sleazy, until now. Would he please remember that if a seat on a private jet to Phuket cost the same as an economy seat on Dragonair, then we would all be flying on private jets. There is some significant advantage in that, and it is worth much more than he paid for it. The more obvious question is this: how did he end up consorting with such "friends" - would the tycoons have befriended him if he was just a pen-pushing junior civil servant, as he once was? What value does a tycoon place on the ability to bend the CE's ear for three nights on a yacht and several hours on a plane? Could he actually believe that they like him as a person rather than as CE? He'll find out soon enough.

NEW ARTICLE
Raking muck, Part 2
Continuing our series, we look at a set of over-priced acquisitions and questionable transactions by China Post e-Commerce and others, building a matrix which demonstrates the close connections between the persons involved. We call on the SFC to investigate. (27-Feb-2012)

RECENTLY
Raking muck, Part 1
In the first of a multi-part series, we delve into a transaction by the HK offshoot of Xinhua, the PRC's official news agency, and the people behind it. (21-Feb-2012)

IN OTHER NEWS
HKICPA disciplines Paul Chan Cheuk Chi. Reasons
HKICPA, 24-Feb-2012
The unnamed finance director (actually, manager) is Steve Lam Sing Keung and his unnamed employer was PCCW Ltd (0008). The unnamed corporate practice of which Paul Chan Cheuk Chi was a director is Baker Tilly Hong Kong Ltd. The bogus debit note was to cover the cost of "employing" Lam's girlfriend so that she could get a work visa in HK.

Duo charged with fraud over acquisition of HK$500m plantation project by China Env Res (1130)
ICAC, 23-Feb-2012
Mr Choy Ping Fai is the husband of the current Chairman, Ms Kam Yuen. He is a substantial shareholder. Lawrence Lo King Fat is a former Executive Director. The Chairman in 2008 was Mr Tan Sim Chew.

Eric Ng Kwok Wai, Fred Lui Chi Kit disciplined by HKICPA Reasons
HKICPA, 23-Feb-2012
Both men are or were directors of Eric Ng C.P.A. Ltd. This is the second time that Eric Ng Kwok Wai has been disciplined in 2 years.

Cathay Pacific Airways Ltd v Flight attendants
HK Court of Final Appeal, 23-Feb-2012
Cathay is granted leave to appeal to the highest court.

SFC v Tiger Asia Management LLC & others
HK Court of Appeal, 23-Feb-2012

Winnie Lo Wai Yan v HKSAR
HK Court of Final Appeal, 23-Feb-2012
The solicitor succeeds in her appeal and has her conviction for breach of the law on champerty and maintenance quashed. Bokhary says "nothing which I have said is meant to discourage consideration of legislative reform of the law as to maintenance, champerty or matters relating thereto." Ribeiro says: "I wish to raise for consideration the question whether and to what extent criminal liability for maintenance should be retained in Hong Kong... In England and Wales, criminal and tortious liability for both maintenance and champerty were abolished by the Criminal Law Act 1967..."

Henry Tang - the opera
RTHK, 19-Feb-2012
Hilarious stuff from Steve James.

Pass it on!
This free newsletter goes to over 20,000 practitioners, issuers, regulators and investors in Hong Kong's markets. If you enjoy Webb-site, then please invite a friend to find out what they are missing and subscribe! Visit our archives, and do your homework before you invest.

Remember that, apart from our occasional articles, you can follow our daily updates on HK events via RSS, Twitter, or Facebook.