News

Concentration warning in Jinhai (2225)
SFC, 29-Jul-2021
The top 20 holders had 95.14% as at 19-Jul-2021.
Observations on Next Digital (0282)
Webb-site.com, 28-Jul-2021
A Financial Inspector has not been appointed in HK since last century, before the SFC gained new powers under the SFO in 2003. Now, Financial Secretary Paul Chan, who will neither confirm nor deny plans to run for CE, is throwing this redundant tool at Next Digital.
Concentration warning in JLogo (8527)
SFC, 26-Jul-2021
The top 20 holders had 93.14% as at 14-Jul-2021.
Censure of 2 ex-directors of Farnova (8153)
SEHK, 19-Jul-2021
For dealing in the shares during the pre-results blackout period, and for failing to cooperate with the investigation.
SFC censures BIT Mining Ltd (NYSE:BTCM) for breaches of the Takeovers Code
SFC, 19-Jul-2021
In relation to Loto Interactive Ltd (8198.HK), after BTCM handed control of itself to founder Vincent Law Man San by issuing super-voting preference shares to him for US$65k.
Webb on "Backchat" re tourism and (second half) the future of authoritarian HK
RTHK, 16-Jul-2021
The discussion took a surprising turn…
30 years in Hong Kong
Webb-site.com, 15-Jul-2021
This seems like a suitable time for an update from our founder.
Censure of Longrun Tea (2898) and directors
SEHK, 14-Jul-2021
For a major, undisclosed connected loan to a company controlled by the founding Chairman Mr Chiu Ka Leung and another ED Mr Jiao Shaoliang, amongst other things.
Court disqualifies Lin Supeng, ex-ED of Anxin-China (ex-1149.HK) for 8 yearsJudgment
SFC, 13-Jul-2021
There was massive overstatement of cash balances in the audited accounts for 2011 to 2013, during which the group reported massive profit margins. So why didn't auditors BDO Ltd detect this before finally noticing during the 2014 audit? The audits were signed for BDO in 2011 and 2012 by Peter Chow Tak Sing and in 2013 by Lam Pik Wah. The group provided false bank records to the auditor, but for material amounts, auditors should obtain confirmations directly from banks (see HKSA 505). Did they? Or were the bank staff complicit in this?
Cai Zhen Rong v SEHK
HK Court of First Instance, 9-Jul-2021
Leave to apply for judicial review of the decision to delist Blockchain Group Co Ltd (0364) is dismissed.
Longrun Tea (2898) v SEHK
HK Court of First Instance, 9-Jul-2021
Leave to apply for judicial review is dismissed.
Ms Han Heli banned for 5 years for fake sick-leave certs
HKICPA, 8-Jul-2021
She was an internal auditor at Bank of Shanghai (HK), which fired her for this.
Court of Appeal grants HK$622m compensation orders against ex-directors of EganaGoldpfeil (Holdings) LtdJudgment
SFC, 29-Jun-2021
It's almost 14 years since Webb-site blew the whistle on this. No criminal charges were ever laid.
SFC fines Deutsche Securities Asia Ltd HK$2.45m over bonus share SNAFUStatement of Disciplinary Action
SFC, 24-Jun-2021
Not for the first time, a firm falls foul of the antiquated HK listco practice of issuing "bonus shares", which temporarily freeze part of the market cap until they are issued and do nothing for shareholder value except to generate expenses. Also, Deutsche took 6 months to confess to the SFC.
Jimmy Siu and Yip Kai Yin of Elite Partners CPA Ltd fined HK$300k + $200k costs
HKICPA, 24-Jun-2021
For bad audit work. We can tell you that the unnamed listed company involved was China Zenith Chemical, now named Xinyang Maojian (0362).
Ex-Tesco sourcing manager admits accepting US$615k bribes
ICAC, 18-Jun-2021
Every little helps. The defendant shared about half of the illegal rebates with the senior buying manager by paying cash to the latter when he visited HK. The senior left Tesco in 2017 but it is unclear whether he was prosecuted in the UK.
Censure/criticism of Tenwow (ex-1219) and 9 directors
SEHK, 15-Jun-2021
For undisclosed connected transactions and very odd-looking purported prepayment agreements totalling over RMB2bn.
David Yeung Chun Yue subscribes 33m shares (6.04%) of VBG (8365) for HK$4.95m
Company announcement, 15-Jun-2021
He is the Managing Director of D & Partners CPA Ltd, auditor of small listed companies, some of which have used VBG Capital as financial adviser.
MMT sanctions Cheng Chak Ngok for insider dealing in China Gas (0384) in 2011MMT report
SFC, 11-Jun-2021
Another long-running case comes to a close, following a retrial after the first MMT hearing wrongly used the criminal rather than civil standard of proof and cleared him.
Ex-Dah Sing Bank manager jailed 3 months for commission fraud
ICAC, 10-Jun-2021
Ng Chiu Man, 34, falsely told a client that they had to buy an insurance policy before opening a corporate bank account, thereby earning him a commission.
Criticism of Yu Jian Qiu, Chairman of China Metal Resources Utilization (1636)
SEHK, 10-Jun-2021
For dealing during the results blackout period, which was extended because the 2019 results were initially unaudited. He is directed to attend 9 hours of training.
SFC suspends Francis Lun Sheung Nim for 7.2 monthsStatement of Disciplinary Action
SFC, 10-Jun-2021
Lun "failed to appreciate and discharge his responsibilities as an RO and senior management of a licensed corporation".
Censure of Baytacare Pharma (ex-8197), directors & supervisors
SEHK, 8-Jun-2021
For multiple undisclosed connected transactions with the Chairman and his Dad, amongst other things. We note that one of the censured INEDs is Victor Gao Zhikai, the frequent CCTV commentator. He is also an INED of E-commodities (1733) and Modern Land (China) (1107).
SFAT allows review for Henry Cai HongpingSFAT ruling
SFC, 4-Jun-2021
The tribunal concludes that it was "as likely as not" that Mr Cai was appointed as the team Principal for the doomed IPO of China Metal Recycling, and contradictory reports from UBS suggest it could also have been Michael Ngai Ming Tak, who also denied it. The standard of proof, namely the balance of probabilities, was not met.
Ex-member of Medical Council charged
ICAC, 3-Jun-2021
Solicitor Monita Lau Wai Yee is alleged to have used her knowledge of a complainant to obtain legal fees for her unnamed firm to act for him. We can tell you she is a Consultant of Fongs. She is also a member of the Criminal and Law Enforcement Injuries Compensation Boards and a Chair of the Buildings Appeal Tribunal Panel, both since 2015.
Court orders boiler room fraudsters to compensate investorsJudgment
SFC, 3-Jun-2021
The case began in 2014. The HK corporate bank accounts will be used to partially compensate 75 victims with about HK$4.3m.

Our stories

Observations on Next Digital (0282)
A Financial Inspector has not been appointed in HK since last century, before the SFC gained new powers under the SFO in 2003. Now, Financial Secretary Paul Chan, who will neither confirm nor deny plans to run for CE, is throwing this redundant tool at Next Digital. (28-Jul-2021)
30 years in Hong Kong
This seems like a suitable time for an update from our founder. (15-Jul-2021)
Carrie Lam, Broadcaster-in-Chief
Contradicting a 2018 statement to LegCo, the HK Govt is now in the TV distribution business, removing competition and exclusivity by buying the Tokyo Olympics with your tax dollars and sublicensing them for free, risking a thinning-out of coverage. What next? (11-May-2021)
SFC launches Govt welfare scheme for property tycoons
Well, not all tycoons, only larger ones. (10-May-2021)
The long-awaited Law Reform Commission report on an archives law
With RTHK, a Government Department, currently destroying its online archives, we asked the LRC why there has been no report 26 months after a consultation on an archives law closed. Here is their response. (6-May-2021)
How to end HK's border lockdown
HK's economic recovery depends on fully re-opening its borders, but it can't when so few have been vaccinated. With near-zero COVID, we must use other vaccination incentives. We propose a 4-pronged solution, including a VacciLottery and an inbound travel exemption. (27-Apr-2021)
Government misled LegCo over HKIDs
A quick Sunday search using a single popular name finds 8 pairs of matching masked HKIDs in the Companies Registry. There must be hundreds or thousands of other such pairs on other names - yet the Government claimed on Friday that it could only find 8 in the entire database. (Updated 13-Apr). (12-Apr-2021)
HK's inbound quarantine laws: dangerous, irrational and unconstitutional
We put our microscope on HK's inbound quarantine laws and find that the 21-day length of quarantine actually increases the risk to the community, Further, the ban on arrivals from 4 countries is irrational. Both fail to satisfy constitutional tests of proportionality. (16-Mar-2021)
The Budget and HK's Road to Serfdom
The so-called "Consumption Voucher" will probably become another cash handout, a total of HK$108bn over 2 years - but that's not the point. HK's budget has long since deviated from the Basic Law requirement to keep the budget in line with Gross Domestic Product over time, having expanded by over a quarter since the 1997 Handover. HK is becoming a tax-and-spend interventionist economy, departing from the free-market principles at the root of its success. (26-Feb-2021)
How the GameStop game will stop
…and who will benefit when it does. (28-Jan-2021)
Meter Madness
How HK's policies of pseudo-anonymity and deep under-pricing of metered parking have resulted in a half-baked not-very-smart upgrade to the system, launched yesterday. (19-Jan-2021)
The Main Board profit requirement - for whom?
Webb-site responds to the HKEX proposal which further raises the barriers to entry for smaller companies on its monopoly stockmarket and reduces investor choice. Help us out and add your voice! (14-Jan-2021)
ESS Revealed
As part of our push for open data, Webb-site tonight publishes the first detailed analysis of approved claims under the so-called "Employment Support Scheme", including league tables of the top 5,000 recipients and a search function for all recipients. (13-Dec-2020)
COVID-19: were the lockdowns worth the socio-economic cost?Video replay
These are the slides from a "Webbinar" with David Webb hosted by Exeter College, Oxford University, this evening. As vaccines draw near, the debate on the global policy responses to the pandemic should begin. (4-Dec-2020)
Govt adopts part of our CICS proposal - now get it right
3 days after our article last Monday, the HK Govt began talking about a compensation scheme for virus-positive tests, to incentivise self-employed symptomatic people facing loss of income to come forward. But early reports suggest it will be too little and won't apply to close contacts, deterring people who are symptomatic if the close contact is a family member who will be deprived of income while in the quarantine camp. Get it right! (22-Nov-2020)

Other news

Concentration warning in Jinhai (2225)
SFC, 29-Jul-2021
The top 20 holders had 95.14% as at 19-Jul-2021.
Concentration warning in JLogo (8527)
SFC, 26-Jul-2021
The top 20 holders had 93.14% as at 14-Jul-2021.
Censure of 2 ex-directors of Farnova (8153)
SEHK, 19-Jul-2021
For dealing in the shares during the pre-results blackout period, and for failing to cooperate with the investigation.
SFC censures BIT Mining Ltd (NYSE:BTCM) for breaches of the Takeovers Code
SFC, 19-Jul-2021
In relation to Loto Interactive Ltd (8198.HK), after BTCM handed control of itself to founder Vincent Law Man San by issuing super-voting preference shares to him for US$65k.
Webb on "Backchat" re tourism and (second half) the future of authoritarian HK
RTHK, 16-Jul-2021
The discussion took a surprising turn…
Censure of Longrun Tea (2898) and directors
SEHK, 14-Jul-2021
For a major, undisclosed connected loan to a company controlled by the founding Chairman Mr Chiu Ka Leung and another ED Mr Jiao Shaoliang, amongst other things.
Court disqualifies Lin Supeng, ex-ED of Anxin-China (ex-1149.HK) for 8 yearsJudgment
SFC, 13-Jul-2021
There was massive overstatement of cash balances in the audited accounts for 2011 to 2013, during which the group reported massive profit margins. So why didn't auditors BDO Ltd detect this before finally noticing during the 2014 audit? The audits were signed for BDO in 2011 and 2012 by Peter Chow Tak Sing and in 2013 by Lam Pik Wah. The group provided false bank records to the auditor, but for material amounts, auditors should obtain confirmations directly from banks (see HKSA 505). Did they? Or were the bank staff complicit in this?
Cai Zhen Rong v SEHK
HK Court of First Instance, 9-Jul-2021
Leave to apply for judicial review of the decision to delist Blockchain Group Co Ltd (0364) is dismissed.
Longrun Tea (2898) v SEHK
HK Court of First Instance, 9-Jul-2021
Leave to apply for judicial review is dismissed.
Ms Han Heli banned for 5 years for fake sick-leave certs
HKICPA, 8-Jul-2021
She was an internal auditor at Bank of Shanghai (HK), which fired her for this.
Court of Appeal grants HK$622m compensation orders against ex-directors of EganaGoldpfeil (Holdings) LtdJudgment
SFC, 29-Jun-2021
It's almost 14 years since Webb-site blew the whistle on this. No criminal charges were ever laid.
SFC fines Deutsche Securities Asia Ltd HK$2.45m over bonus share SNAFUStatement of Disciplinary Action
SFC, 24-Jun-2021
Not for the first time, a firm falls foul of the antiquated HK listco practice of issuing "bonus shares", which temporarily freeze part of the market cap until they are issued and do nothing for shareholder value except to generate expenses. Also, Deutsche took 6 months to confess to the SFC.
Jimmy Siu and Yip Kai Yin of Elite Partners CPA Ltd fined HK$300k + $200k costs
HKICPA, 24-Jun-2021
For bad audit work. We can tell you that the unnamed listed company involved was China Zenith Chemical, now named Xinyang Maojian (0362).
Ex-Tesco sourcing manager admits accepting US$615k bribes
ICAC, 18-Jun-2021
Every little helps. The defendant shared about half of the illegal rebates with the senior buying manager by paying cash to the latter when he visited HK. The senior left Tesco in 2017 but it is unclear whether he was prosecuted in the UK.
Censure/criticism of Tenwow (ex-1219) and 9 directors
SEHK, 15-Jun-2021
For undisclosed connected transactions and very odd-looking purported prepayment agreements totalling over RMB2bn.
David Yeung Chun Yue subscribes 33m shares (6.04%) of VBG (8365) for HK$4.95m
Company announcement, 15-Jun-2021
He is the Managing Director of D & Partners CPA Ltd, auditor of small listed companies, some of which have used VBG Capital as financial adviser.
MMT sanctions Cheng Chak Ngok for insider dealing in China Gas (0384) in 2011MMT report
SFC, 11-Jun-2021
Another long-running case comes to a close, following a retrial after the first MMT hearing wrongly used the criminal rather than civil standard of proof and cleared him.
Previously on Webb-site.com
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