Thursday 8th January 2015

Dear Reader,

Time to stick a pin in 4 more bubbles...

NEW ARTICLES
The bubbles in CNN
We warn investors of 3 bubbles amounting to HK$20.0bn (US$2.58bn) in the "Chung Nam Network" of listed companies, Heritage (0412), Rising Dev (1004) and Mascotte (0136) and look at a blatantly bad decision by the board of Hao Tian (0474), and an undisclosed Very Substantial Acquisition by that company. One of the bubbles is even a Russian doll "double bubble" - one owns the other. (8-Jan-2015)

Imperial Pacific bubble
We look at the US$3.2bn bubble in Imperial Pacific (1076) surrounding a Macau junket operation and a casino project in Saipan. (8-Jan-2015)

RECENTLY ON WEBB-SITE
Petition filed with SEHK and Listing Committee
We close and submit the petition on 1-share-1-vote, and call on the Listing Committee to get back to improving the quality of HK's market rather than trying to degrade it, starting with 4 key issues. (2-Jan-2015)

Kuangchi the stratospheric stock
Our latest New Year bubble worth popping is Kuangchi (0439), HK's top-performing stock of 2014, valued at HK$32.03bn (US$4.13bn) or 16.1x NTAV. (2-Jan-2015)

SFC actions risk chilling critics
A New Year's Eve SFAT ruling reveals an SFC action against Moody's for its 2011 "red flags" report, following the recent launch of MMT action against a short-selling analyst. The SFC risks chilling publication of critical opinion and analysis - something we would hate to stop doing. We will be watching the cases carefully. (1-Jan-2015)

Where will it end?
The judge in the Hui-Kwok trial resorted to quoting Sir Humphrey Appleby in rejecting Bloomberg's request for a copy of fund flow charts presented to the jury. (31-Dec-2014)

Some bubbles for New Year
With the exchange shut for 2014, we take a close look at two bubbles and the other listed companies surrounding them. (31-Dec-2014)

IN OTHER NEWS
Former BEA (0023) Sen VP & 3 others charged with bribery, false accounting
ICAC, 7-Jan-2015

5 years' jail for selling HK$9m of counterfeit shelters to Government
ICAC, 7-Jan-2015

Court grants orders to restrain suspected boiler rooms
SFC, 7-Jan-2015

HKGov: Basic Law factsheet change was "editorial refinements"...
HK Government, 7-Jan-2015
..."and did not involve revisions of any content and information" er, yes, except for the bits you revised, as Webb-site spotted on 18-Dec-2014. High degree of sophistry.

Webb on "Backchat" re Report on Recent Community & Political Situation. The report
RTHK, 7-Jan-2015

Ambulancemen & Chinese Medicine Practitioners guilty of fraud
ICAC, 6-Jan-2015
Is there a herbal remedy for stupidity? The two men were caught claiming to have seen the CMPs while immigration records show they were not in HK.

And much more besides...
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