News

Ex-civil servant & husband jailed for HK$4.9m housing allowance fraud
ICAC, 15-Jan-2020
Why does the Government pay more to those who rent a home than to those who don't? In the private sector, people get what their skills are worth, no more, no less. Mr Luk was worth what his employer paid him. If he had received it as salary rather than housing allowance then his wife would have been in the clear, but he probably wanted the weird HK tax break in which housing is only assessed as 10% of cash pay, regardless of value. That should be scrapped.
Your right to insult the national anthem
Webb-site.com, 11-Jan-2020
The HK Government is preparing to ignite fresh protests by resuming the Second Reading of the Bill, which must occur by July, or the bill lapses. Last night, it ridiculously claimed that the Bill is not a restriction of free speech. Of course it is. The only question is whether that is constitutional.
Ex-Estate Surveyor of HD and husband guilty of HK$4.9m housing allowance fraud
ICAC, 7-Jan-2020
Once again, the real question is why the Government pays different amounts to employees with the same skills and experience based on whether they rent a flat and whether their spouse has a housing allowance from his/her employer.
HKICPA fines Ms. Chan Mei Ling (A09996) HK$15k
HKICPA, 7-Jan-2020
For failing to perform appropriate audit procedures on a private company's 2016 accounts.
Susan Brown Clift v HK Cyberport Management Co Ltd
HK Court of First Instance, 6-Jan-2020
The widow of Mark Owen Clift, who was COO at the Cyberport when he died in 2017 of dilated cardiomyopathy, is claiming under the Employees' Compensation Ordinance that his death was caused by emotional stress from two previous slip-and-fall accidents at the property.
SFC fines RHB Securities Hong Kong Ltd HK$6.4mListings sponsored by RHB
SFC, 2-Jan-2020
One of the 4 matters involved was failure to fully disclose a listing sponsorship in a Nov-2015 research report on an unnamed client. We can tell you that the only listing sponsored by RHB Capital HK Ltd in 2015 was Clear Lift Holdings Ltd (now Hao Tian International Construction Investment Group Ltd, 1341.HK).
AV Concept (0595) "clarifies" shareholdings
Company announcement, 30-Dec-2019
Importantly, Chairman So Yuk Kwan increased his holding by 25m shares (3.23%) "in June 2017", when the shares were "held by a friend" on trust. This appears to breach the Creeper Rule of 2% per year, triggering a mandatory general offer at the highest price paid in the prior 6 months. It may relate to a disposal by Central Investments Ltd on 8-Jun-2017, at an undisclosed price. The adjusted highest known price paid by Mr So in the 6 months prior was $0.4917 ($0.59 before a bonus issue).
Censure of Hu Guo An, ex-ED of Future Bright Mining (2212)
SEHK, 30-Dec-2019
For dealing during the blackout period before the 2017 results. He's also an ED of Silk Road Energy Services (8250).
HK's richest family urges Govt to help its hotels
Bloomberg, 16-Dec-2019
"We really need it" says Adam Kwok, son of convicted felon Thomas Kwok. What we really need is for tycoons like him to give up corporate voting for seats in the Functional Constituencies and Election Committee - including hotels, real estate and transport, all of which have corporate voters controlled by his family. 1 worker, 1 vote. This simple step would democratise HK.
Consultant guilty of HK$680k bribery over HKJC membership application
ICAC, 13-Dec-2019
Comment: with only 200 Voting Members able to nominate new members of the Club, and the incorrect presumption of respectability that membership buys, the system invites corruption. The Club should just sell available memberships by regular sealed tender and stop trying to act as arbiters of probity.
Concentration warning in ZZ Capital (8295)
SFC, 12-Dec-2019
The top 20 holders have 91.22%. This is the second warning - the stock has gained 82.7% since the first warning on 22-May-2019.
Censure of Artini (0789) but none of its directors
SEHK, 11-Dec-2019
For late reporting of results for the year to 31-Mar-2017.
24 legislators v CE in Council & others
HK Court of Appeal, 10-Dec-2019
The court refuses the Government's applications for a Temporary Validity Order for the anti-mask law or a Temporary Suspension Order of the Court of First Instance judgment that the ERO (in cases of public danger) and most of the PFCR (even if passed by LegCo) are unconstitutional. The substantive appeal will be heard on 9-10 January 2020.

Our stories

Your right to insult the national anthem
The HK Government is preparing to ignite fresh protests by resuming the Second Reading of the Bill, which must occur by July, or the bill lapses. Last night, it ridiculously claimed that the Bill is not a restriction of free speech. Of course it is. The only question is whether that is constitutional. (11-Jan-2020)
Pop goes the ArtGo bubbleLose your marbles
It took them a while, but MSCI now says "Following further analysis and feedback from market participants on investability", ArtGo (3313) will not go into the MSCI index. The stock is down 98% as we write. Our bubble warning on 15-Sep-2019 is proven correct. (21-Nov-2019)
Judge takes aim at comments by Vice Premier
In continuing the injunction against doxxing with an exception for legitimate news activity, Justice Russell Coleman makes interesting comments on the role of the judiciary and the need for a political solution to the social unrest, which is beyond the scope of the courts. (11-Nov-2019)
Facilitating shareholder activism in Asia
Webb-site founder David Webb presented at the PNB Corporate Summit in Kuala Lumpur yesterday. In the opening address, Prime Minister Mahathir Mohamad declared that "Government has no business to be in business". That's encouraging, if it means that Malaysia will sell off Government-Linked Companies in a wave of public offers, harnessing market forces to boost growth and shared prosperity. (31-Oct-2019)
Does your candidate live where you do?
A knee-jerk amendment to the laws on nomination of DC and LegCo candidates goes too far by removing your right to know whether the candidate even lives in your constituency and/or District. We call on LegCo to amend the subsidiary legislation. (18-Oct-2019)
ERO: one judicial review, two judges
Webb-site has learned that in a very rare move, the Chief Justice has directed that 2 judges sit together in the Court of First Instance to hear the judicial review of the Chief Executive's use of the Emergency Regulations Ordinance. (16-Oct-2019)
A closer look at Maxim's
Recent filings reveal the true profits of Hongkong Caterers Ltd, the 50% owner of Maxim's run by the Wu family, and how they take out a substantial management fee from Maxim's on top of the 50% of profits. We also estimate that about 1 in 7 dollars of HK restaurant receipts go to the Maxim's group. Annie Wu has only a 0.33% stake of HC, although her parents and siblings control an estimated 18.6%. (11-Oct-2019)
Carrie Lam and the separation of powers
After trying to breach the firewall between the 2 Systems with the Extradition Bill, she's at it again, invoking the ERO to enact law by regulation. The PFCR, which she says is subsidiary legislation, sets penalties higher than permitted by Ordinance. Subsidiary legislation cannot override existing Ordinances, so she had better not try. Meanwhile, basic maths and weekend events suggest the anti-mask law fails the rational connection test and is unconstitutional. (8-Oct-2019)
Making laws via the ERO may be unconstitutional
The Basic Law establishes a clear separation of powers between executive and legislative branches. A law that allows the Chief Executive to make laws appears unconstitutional. We expect a judicial review if she tries it. Even if she succeeds, draconian laws don't address the root problem: a deficit in democratic accountability for both the CE and LegCo. We again propose local legislation to scrap corporate voting and democratise the system. (4-Oct-2019)
Lose your marbles
Webb-site issues a bubble warning on marble miner ArtGo (3313), which is up 812% since the end of May and now trades at 24x estimated net tangible assets, making a HK$29bn bubble. (15-Sep-2019)
Avoid: S. Culture (1255)
Webb-site issues a bubble warning on this stock. The Chairman has pledged a majority shareholding to a lender. The loss-making firm is trading at 13 times its net tangible asset value and ownership may be highly concentrated. (15-Sep-2019)
Where can one protest if not near MTR stations?
Police have banned a protest march on HK Island on Sunday, partly because it goes near several MTR stations. Of course, the whole point of Mass Transit is to take people near urban areas. This image shows what a 500 metre no-protest zone around stations on the MTR Island line would look like. (13-Sep-2019)
MTR videos are not Personal Data under PDPO
The MTRC and Police are hiding behind a "personal data" excuse for not releasing videos of the incident in Prince Edward Station on 31-Aug-2019. The law on this is clear: if the video doesn't name the subjects, then it isn't personal data. So said the Court of Appeal in 2000. HK badly needs a Freedom of Information law. (10-Sep-2019)
A curious addition to the Transport Constituency
After yesterday's ICAC allegations of vote-rigging in the I.T. sector, should the Taxi Drivers & Operators Association still be added to the list of Transport sector voters? (6-Sep-2019)
The most likely outcome for HK
A systemically unstable equilibrium of civil liberties without democracy may have irrevocably tipped towards an authoritarian outcome. We suggest a way to salvage the situation, but we consider the most likely outcome is now a crackdown. We look at what form that might take, the possible aftermath and the looming 2047 expiry of Basic Law promises. (3-Sep-2019)

Other news

Ex-civil servant & husband jailed for HK$4.9m housing allowance fraud
ICAC, 15-Jan-2020
Why does the Government pay more to those who rent a home than to those who don't? In the private sector, people get what their skills are worth, no more, no less. Mr Luk was worth what his employer paid him. If he had received it as salary rather than housing allowance then his wife would have been in the clear, but he probably wanted the weird HK tax break in which housing is only assessed as 10% of cash pay, regardless of value. That should be scrapped.
Ex-Estate Surveyor of HD and husband guilty of HK$4.9m housing allowance fraud
ICAC, 7-Jan-2020
Once again, the real question is why the Government pays different amounts to employees with the same skills and experience based on whether they rent a flat and whether their spouse has a housing allowance from his/her employer.
HKICPA fines Ms. Chan Mei Ling (A09996) HK$15k
HKICPA, 7-Jan-2020
For failing to perform appropriate audit procedures on a private company's 2016 accounts.
Susan Brown Clift v HK Cyberport Management Co Ltd
HK Court of First Instance, 6-Jan-2020
The widow of Mark Owen Clift, who was COO at the Cyberport when he died in 2017 of dilated cardiomyopathy, is claiming under the Employees' Compensation Ordinance that his death was caused by emotional stress from two previous slip-and-fall accidents at the property.
SFC fines RHB Securities Hong Kong Ltd HK$6.4mListings sponsored by RHB
SFC, 2-Jan-2020
One of the 4 matters involved was failure to fully disclose a listing sponsorship in a Nov-2015 research report on an unnamed client. We can tell you that the only listing sponsored by RHB Capital HK Ltd in 2015 was Clear Lift Holdings Ltd (now Hao Tian International Construction Investment Group Ltd, 1341.HK).
AV Concept (0595) "clarifies" shareholdings
Company announcement, 30-Dec-2019
Importantly, Chairman So Yuk Kwan increased his holding by 25m shares (3.23%) "in June 2017", when the shares were "held by a friend" on trust. This appears to breach the Creeper Rule of 2% per year, triggering a mandatory general offer at the highest price paid in the prior 6 months. It may relate to a disposal by Central Investments Ltd on 8-Jun-2017, at an undisclosed price. The adjusted highest known price paid by Mr So in the 6 months prior was $0.4917 ($0.59 before a bonus issue).
Censure of Hu Guo An, ex-ED of Future Bright Mining (2212)
SEHK, 30-Dec-2019
For dealing during the blackout period before the 2017 results. He's also an ED of Silk Road Energy Services (8250).
Previously on Webb-site.com
Check out our full list of articles in the archive, since our launch in 1998.

Sign up for our free newsletter

Recommend Webb-site to a friend

Copyright & disclaimer, Privacy policy

Back to top