News

SFC freezes accounts in suspected social media pump & dumpCCASS movements
SFC, 18-Feb-2021
They don't name the stock, but Webb-site can tell you it's probably Macau E&M (1408) which listed at $1.00 on 11-Sep-2020 and closed at $4.36 on 25-Nov-2020 before crashing 81.9% the next day. See the movements in our CCASS Analysis System.
Censure of Brightoil Petroleum (ex-0933) and 4 directors
SEHK, 3-Feb-2021
They failed to announce SEHK Listing Committee's decision to delist the company - something that SEHK could have announced anyway. Why doesn't SEHK announce its own decisions and appeals against them, to keep the market informed?
Lai Xiaomin, ex-Chairman of China Huarong Asset Management (2799) executedHuarong-CMB network
Reuters, 29-Jan-2021
The company featured in our "Huarong-CMB network - 26 stocks not to own" article of 19-Oct-2018.
How the GameStop game will stop
Webb-site.com, 28-Jan-2021
…and who will benefit when it does.
David Perry QC withdraws from prosecuting pan-dems
HK Government, 20-Jan-2021
4 days after we queried how he proposed to get to HK given the ban on travel from the UK, Mr Perry withdraws, partly because of "the exemption of quarantine". By the way, this case involves alleged offences under the Public Order Ordinance, not the National Security Law. UK Foreign Secretary Dominic Raab was wrong on that point, but it's an easy mistake to make given that over 50 pan-dems were arrested under suspicion of NSL offences 2 weeks ago.
Meter Madness
Webb-site.com, 19-Jan-2021
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.
Specially Designated Nationals list updateState Department Press Statement
US Treasury, 15-Jan-2021
The detailed list of persons sanctioned by the United States yesterday.
The Main Board profit requirement - for whom?
Webb-site.com, 14-Jan-2021
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!
Back on TraHK (2800)
Company announcement, 13-Jan-2021
Without giving reasons, fund manager State Street (ultimately a US person) now says that TraHK will resume investments in US-sanctioned stocks in the HSI, 2 days after it stopped. 2% of the units have been redeemed since then. This comes after Webb-site called for the Supervisory Committee to remove State Street and replace it with a non-US person. Will they change their mind a second time, like the New York Stock Exchange did when it delisted the stocks? Wait and see.
Re David Perry QC
HK Court of First Instance, 12-Jan-2021
Mr Perry is approved to visit HK and prosecute leading pan-democrats for unauthorised assembly. Trial begins 16-Feb, but all arrivals from UK are currently banned - will the Govt exempt him, or is he already here? Like HK residents stranded in the UK, he could go somewhere else for 21 days and then do 21 days quarantine in HK, but that's 42 days of taxpayers' fees before he starts, not before 24-Feb.
TraHK (2800) cannot buy any more US-sanctioned HSI stocks
Company announcement, 11-Jan-2021
That's because it has US Persons as its Trustee and Manager. There is a Supervisory Committee which has the power to change both, and it should now do so, picking a non-US manager and trustee. Until then, the HK$105bn fund will struggle to track the Hang Seng Index.
Criticism of Xinming China (2699) and its Chairman Chen Chengshou
SEHK, 8-Jan-2021
Without telling his board of directors, or announcing it, or getting shareholders' approval, he pledged RMB535.4m of the group's deposits at Bank of Wenzhou (of which he is a director) to secure a loan by that bank to a third party, Zhejiang Muji Trading Co Ltd, just before the 2018 year-end. The pledge was released a few days later after the guarantee fee was not paid.
Jimmy Lai returned to custody pending prosecution's appeal against bail
HK Court of Final Appeal, 31-Dec-2020
The top court cites prosecution's concern that Mr Lai may cause "irreparable harm to national security" while on bail, rendering the appeal nugatory, and chooses the "status quo ante" as the magistrate's decision to remand him in custody rather than the status quo before that, of being a free man.
Chairman Instruments Trading Ltd fined HK$160k for kickbacks to instructors
ICAC, 24-Dec-2020
The fiddle involved 4 violins, 2 cellos and a viola. The firm orchestrated payments of over $44k on over $140k of sales. The firm pleaded guilty but no evidence was offered against directors Yeung Lok Wah and Tang Pui Wun.
SFC restricts 3 client accounts at CNI Securities Group Ltd linked to suspected market manipulationRestriction Notice
SFC, 23-Dec-2020
The Gazette Notice reveals the amount involved is HK$109.9m. The unnamed alleged manipulated stock is probably in the Enigma Network, for which CNI has done multiple placings.
SFC fines Fulbright Securities HK$3.6mStatement of Disciplinary Action
SFC, 23-Dec-2020
For failing to detect illegal short-selling for 6 months from Oct-2015 to Mar-2016.
Concentration warning in EEKA Fashion (3709)
SFC, 16-Dec-2020
The top 20 holders have 92.77%.
Bookazine refuses to stock political title by HKFP columnist citing NSL fears
HK Free Press, 15-Dec-2020
Who knew that anyone still buys books at Bookazine?
MMT finds Li Yik Shuen culpable of insider dealing in Meadville sharesMMT report
SFC, 14-Dec-2020
Tom Tang Chung Yen, former Meadville Chairman and brother of former Chief Secretary Henry Tang, is cleared because the MMT is not satisfied that he intended to tip her off. The appendix (PDF p140) reveals 5 years of delays by the Department of Justice from 2013-2018 before deciding that a criminal prosecution could not be brought.
ESS Revealed
Webb-site.com, 13-Dec-2020
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.
COVID-19: were the lockdowns worth the socio-economic cost?Video replay
Webb-site.com, 4-Dec-2020
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.
PECS Register monthly update
HK Government, 30-Nov-2020
SFC sues New Ray Medicine (6108) and its former top executives
SFC, 30-Nov-2020
NRM is a company in our "Enigma Network".
Long Hair wins final appeal on prison haircutsJustice is blind, except for haircuts
HK Court of Final Appeal, 27-Nov-2020
The top court unanimously overturns the Court of Appeal's unanimous judgment by (soon to be Chief Justice) Andrew Cheung, Johnson Lam and Jeremy Poon. Male prisoners were not given the same choice as female prisoners over their hair length, and that was sex discrimination. See our article of 1-May-2018 analysing the CA's faulty judgment. First Instance Justice Thomas Au Hing Cheung (now a CA judge) is vindicated.
SFC bans Pang Hon Pan, ex-Standard Chartered, for 21 monthsStatement of Disciplinary Action
SFC, 25-Nov-2020
The HKMA was originally going to ban him for 15 months, but then he appealed to the SFAT and then ducked a hearing by lying to them about undergoing quarantine after a business trip to the mainland - it wasn't a business trip and he wasn't in quarantine. The moral of the story is: when you are in a hole, stop digging. His offence was failing to disclose his brokerage accounts and dealings to his employer for 7 years.

Our stories

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)
The geo-politics of HK's clunky contact-tracing app
We look at the deceptively-named "LeaveHomeSafe" app, and why it failed to adopt the automated technology worked out by Google and Apple for exposure notifications and instead resorted to a home-brewed QR-scanning system that few will use. The answer may lie in politics. (19-Nov-2020)
Discover COVID cases with behavioural economics, not force of law
The HK Government has again displayed its authoritarian streak by introducing a mandatory testing law. Instead, citizens and their close contacts should be compensated for as long as they are compulsorily isolated after one of them tests positive. For the self-employed, this would remove a deterrent to seeing a doctor when sick, and thereby also reduce the spread of other diseases. (16-Nov-2020)
Independent shareholders veto Tongda Hong Tai (2363) Whitewash Waiver
The largest shareholder wanted to underwrite a 1:1 open offer of new shares, potentially obtaining majority control without making a General Offer. Howel Thomas and his Wykeham Capital Asia Value Fund made sure that didn't happen, using the 75% approval requirement introduced in 2018. (16-Nov-2020)
KPMG supports one Country, three singing accountants
But are they tenors? Harmonising in the annual report of Shenwan Hongyuan (6806). Also, HK is "overseas" from PRC - so not part of it then? (12-Nov-2020)
image
A New Ray of light on an Enigma Network case
A decision quietly posted on the SFAT website reveals that Zhou Ling, ex-Chairman of New Ray Medicine (6108) is suspected by the SFC to have committed "misconduct and obtained secret profits from certain transactions" by NRM. Earlier gazetted Restriction Notices on a client at 2 brokers now make sense - the SFC has reduced disclosure in that area so much as to make the publication meaningless. (26-Oct-2020)
A special message from our Founder
Unfortunately, there are going to be some changes around here. (8-Jun-2020)
Government misled LegCo over COVID-19 broker handout
Applying to the Finance Committee, the Government made claims which it knew or should have known were false and misleading. It was either lying or reckless. Webb-site tells you the truth. (1-May-2020)
Non-dispersable gatherings
We hereby "sternly clarify" that the Police and Secretary for Justice are wrong to claim that groups of 4 standing more than 1.5 metres apart constitute a single gathering if they have a common purpose. The Group Gathering Regulation allows for multiple, non-dispersable gatherings and contain no reference to the purpose of participants. We also show how to optimise use of available space. (28-Apr-2020)
image
COVID-19: where do we go from here?
HK is essentially clean: data indicate the latest community transmission was 24 days ago. A potential travel network of clean quarantined countries is emerging, but many others are pursuing a mitigation approach, flattening the curve but leading to the likely premature death of 0.5% of their populations unless interrupted by a vaccine or treatment. We find lessons to be learned from HK's early mistakes. HK should maintain its quarantine and its people should now be free to enjoy their city. (27-Apr-2020)

Other news

SFC freezes accounts in suspected social media pump & dumpCCASS movements
SFC, 18-Feb-2021
They don't name the stock, but Webb-site can tell you it's probably Macau E&M (1408) which listed at $1.00 on 11-Sep-2020 and closed at $4.36 on 25-Nov-2020 before crashing 81.9% the next day. See the movements in our CCASS Analysis System.
Censure of Brightoil Petroleum (ex-0933) and 4 directors
SEHK, 3-Feb-2021
They failed to announce SEHK Listing Committee's decision to delist the company - something that SEHK could have announced anyway. Why doesn't SEHK announce its own decisions and appeals against them, to keep the market informed?
Lai Xiaomin, ex-Chairman of China Huarong Asset Management (2799) executedHuarong-CMB network
Reuters, 29-Jan-2021
The company featured in our "Huarong-CMB network - 26 stocks not to own" article of 19-Oct-2018.
David Perry QC withdraws from prosecuting pan-dems
HK Government, 20-Jan-2021
4 days after we queried how he proposed to get to HK given the ban on travel from the UK, Mr Perry withdraws, partly because of "the exemption of quarantine". By the way, this case involves alleged offences under the Public Order Ordinance, not the National Security Law. UK Foreign Secretary Dominic Raab was wrong on that point, but it's an easy mistake to make given that over 50 pan-dems were arrested under suspicion of NSL offences 2 weeks ago.
Specially Designated Nationals list updateState Department Press Statement
US Treasury, 15-Jan-2021
The detailed list of persons sanctioned by the United States yesterday.
Back on TraHK (2800)
Company announcement, 13-Jan-2021
Without giving reasons, fund manager State Street (ultimately a US person) now says that TraHK will resume investments in US-sanctioned stocks in the HSI, 2 days after it stopped. 2% of the units have been redeemed since then. This comes after Webb-site called for the Supervisory Committee to remove State Street and replace it with a non-US person. Will they change their mind a second time, like the New York Stock Exchange did when it delisted the stocks? Wait and see.
Re David Perry QC
HK Court of First Instance, 12-Jan-2021
Mr Perry is approved to visit HK and prosecute leading pan-democrats for unauthorised assembly. Trial begins 16-Feb, but all arrivals from UK are currently banned - will the Govt exempt him, or is he already here? Like HK residents stranded in the UK, he could go somewhere else for 21 days and then do 21 days quarantine in HK, but that's 42 days of taxpayers' fees before he starts, not before 24-Feb.
TraHK (2800) cannot buy any more US-sanctioned HSI stocks
Company announcement, 11-Jan-2021
That's because it has US Persons as its Trustee and Manager. There is a Supervisory Committee which has the power to change both, and it should now do so, picking a non-US manager and trustee. Until then, the HK$105bn fund will struggle to track the Hang Seng Index.
Criticism of Xinming China (2699) and its Chairman Chen Chengshou
SEHK, 8-Jan-2021
Without telling his board of directors, or announcing it, or getting shareholders' approval, he pledged RMB535.4m of the group's deposits at Bank of Wenzhou (of which he is a director) to secure a loan by that bank to a third party, Zhejiang Muji Trading Co Ltd, just before the 2018 year-end. The pledge was released a few days later after the guarantee fee was not paid.
Jimmy Lai returned to custody pending prosecution's appeal against bail
HK Court of Final Appeal, 31-Dec-2020
The top court cites prosecution's concern that Mr Lai may cause "irreparable harm to national security" while on bail, rendering the appeal nugatory, and chooses the "status quo ante" as the magistrate's decision to remand him in custody rather than the status quo before that, of being a free man.
Chairman Instruments Trading Ltd fined HK$160k for kickbacks to instructors
ICAC, 24-Dec-2020
The fiddle involved 4 violins, 2 cellos and a viola. The firm orchestrated payments of over $44k on over $140k of sales. The firm pleaded guilty but no evidence was offered against directors Yeung Lok Wah and Tang Pui Wun.
SFC restricts 3 client accounts at CNI Securities Group Ltd linked to suspected market manipulationRestriction Notice
SFC, 23-Dec-2020
The Gazette Notice reveals the amount involved is HK$109.9m. The unnamed alleged manipulated stock is probably in the Enigma Network, for which CNI has done multiple placings.
SFC fines Fulbright Securities HK$3.6mStatement of Disciplinary Action
SFC, 23-Dec-2020
For failing to detect illegal short-selling for 6 months from Oct-2015 to Mar-2016.
Concentration warning in EEKA Fashion (3709)
SFC, 16-Dec-2020
The top 20 holders have 92.77%.
Bookazine refuses to stock political title by HKFP columnist citing NSL fears
HK Free Press, 15-Dec-2020
Who knew that anyone still buys books at Bookazine?
MMT finds Li Yik Shuen culpable of insider dealing in Meadville sharesMMT report
SFC, 14-Dec-2020
Tom Tang Chung Yen, former Meadville Chairman and brother of former Chief Secretary Henry Tang, is cleared because the MMT is not satisfied that he intended to tip her off. The appendix (PDF p140) reveals 5 years of delays by the Department of Justice from 2013-2018 before deciding that a criminal prosecution could not be brought.
Previously on Webb-site.com
Check out our full list of articles in the archive, since our launch in 1998.

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