News

HK & Macau Governments launch cartels for HKZM bridge car permits
HK Government, 13-Feb-2018
There will be just 150 companies and 150 individuals who win a permit to drive from HK into Macau, and 600 in the other direction. HK permanent residents must have a job in Macau or have established a company there. A ballot will be held if there are more than 300 applicants. There will also be a Macau Port park-and-ride scheme with 3000 spaces, but by the time you've driven, parked and ridden, the ferry to CoTai might well be faster. There will also be a monopoly shuttle-bus franchise on the bridge.
ICAC and SFC raided Town Health (3886) offices on 9-Feb
Company announcement, 13-Feb-2018
Comment: this is another step forward in the investigation of the "Enigma Network" which Webb-site first exposed last year.
Police Chief Telecommunications Engineer admits deceiving government of HK$1.9m housing loan and allowances
ICAC, 12-Feb-2018
It turns out that his wife received a low-interest housing loan from her employer, a bank, therefor Mr Wong was ineligible for this benefit, and under the perverse logic of civil service, he should have been paid less than someone in the same position who was not married.
Pine Technology (1079) becomes a money-lender
Company announcement, 12-Feb-2018
Comment: this is never a good sign. Investors should get out while they can.
SFC fines Credit Suisse HK$39.3m for years of regulatory breaches
SFC, 8-Feb-2018
Among other things, the firm settled its own sales using clients' securities on 843 occasions from 2010-2016, made 94 naked short sales, and failed to report over 1200 (weekly) short positions between Jun-2012 and Oct-2014.
Freeman (0279) sells 10.57% of Satinu Resources Group Ltd to Co-Lead Holdings Ltd
Company announcement, 7-Feb-2018
Another deal in what we call the "Chung Nam Network". The purchaser is or was owned by multiple listed companies in the network. Freeman gets HK$150m in cash and the other $600m as a 6-month IOU.
Re: China Lumena New Materials Corp
HK Court of First Instance, 7-Feb-2018
This statement of reasons for decision took over 10 months to produce.
HK School of Motoring fined HK$8k for polluting Shing Mun River
HK Government, 6-Feb-2018
Well that will teach them! The maximum fine is $200k, so this fine is only 4% of that. The HKSM group had revenue of HK$348.54m in 2016, so the fine is about 12 minutes' revenue. HKSM is 70% owned by Cross-Harbour (0032) and 30% by Sun Hung Kai Properties (0016).
SJ v Joshua Wong Chi Fung, Nathan Law Kwun Chung & Alex Chow Yong Kang
HK Court of Final Appeal, 6-Feb-2018
The appeal against the jail sentences imposed by the Court of Appeal succeeds. Magistrate June Cheung Ting Ngan's sentences of community service were not wrong in principle and not manifestly inadequate. They have already been served. The Court of Appeal can set sentencing guidelines but cannot retrospectively apply them. Paragraph 127 of the judgment rebukes certain comments of Court of Appeal VP Wally Yeung in his judgment.
Oriental Press Group Ltd & others v Google
HK Court of Appeal, 6-Feb-2018
Google fails in its appeal to prevent a writ being served on it outside HK. The plaintiffs claim that shortly before 8-Apr-2015, their solicitors searched Google for the Chinese characters for "white powder newspaper" and that the results included 8 links which they say were defamatory to them.
Capital VC (2324) dilutes holders againOptions announcement
Company announcement, 2-Feb-2018
The "Enigma Network" investment company is blowing the general mandate, issuing 19.96% new shares at $0.05, not mentioning the 84.9% discount to Net Asset Value of $0.3308 at 31-Dec-2017. The board claims the issue is "in the interests of the Company and the Shareholders as a whole". The placing agent, Infast Brokerage, is 95% owned by GCPS (8193), another Enigma member. 3 minutes eariler, Capital VC announced a grant of 275m options at $0.058 to unnamed persons. That's another potential 10% enlargement of the share base at an 82.5% discount to NAV. We call on the SFC to direct the Stock Exchange to reject the listing application for all the new shares.
Prosperity (0310) coughs up investment details at 30-Jun-2017
Company announcement, 1-Feb-2018
This follows a Webb-site complaint filed on 5-Jan-2018 that the company had failed to comply with Listing Rule disclosure requirements in its interim report and that the Exchange had failed to notice. There are several notable holdings exposed.
Kingston (1031): things you should know
Webb-site.com, 30-Jan-2018
Even after today's plunge, Kingston is trading at 13.2x net tangible assets of $0.508 per share, 70.8x trailing earnings, and is heavily dependent on low-cost loans from its majority shareholder. Don't bet on that continuing. We also look at the extent of its margin lending to controlling shareholders of large numbers of other listed companies.
Censure of Mr Chen Jing, ex-Chairman of TC Orient Lighting (0515)
SEHK, 30-Jan-2018
For having the company guarantee his personal debts. He also failed to respond to the Stock Exchange Listing Department's investigation.

Our stories

Kingston (1031): things you should know
Even after today's plunge, Kingston is trading at 13.2x net tangible assets of $0.508 per share, 70.8x trailing earnings, and is heavily dependent on low-cost loans from its majority shareholder. Don't bet on that continuing. We also look at the extent of its margin lending to controlling shareholders of large numbers of other listed companies. (30-Jan-2018)
Your stocks, your way
We're launching new features for registered users. Build your own stock list, use a dashboard to find information on the stocks, and see CCASS movements, total returns and directors' dealings for your stocks in one page. And yes, it's all free! We also encourage users to give something back to the community by anonymously contributing your Governance Ratings of companies and Trust Ratings of people. (24-Jan-2018)
Total returns on the worst 5 HSI stocks you could've bought on 30-Oct-2007
With the HSI possibly soon to close at a daily record nominal high (ex-dividends), here's a look at the total return (including reinvestment of dividends) on the worst 5 then-index members you could have bought on 30-Oct-2007, the previous daily high. Esprit (0330) was the market darling of its time - rather like Tencent (0700) is today. Esprit has since returned -95.48% up to 12-Jan-2018. (15-Jan-2018)
The wrong way to pay civil servants
A new ICAC case reminds us that the Government and public sector get bad value for taxpayers and lose good people by paying time-limited benefits that are based on irrelevant factors rather than the value of their services. Scrap all the benefits schemes and pay people what they are worth. At the same time, remove the housing loophole from salaries tax, raise personal allowances and bring down the tax rate to compensate. (13-Jan-2018)
Webb-site Who's Who covers HK solicitors
After a lot of coding over Christmas pudding and more than a dash of brandy butter, we are pleased to launch a new section of our database, monitoring HK lawyers. Now you can answer questions such as: Which are the biggest law firms? Who is the longest-practising solicitor? Who moved jobs this month? How many were admitted in other jurisdictions before or after HK? How many HK solicitors work for the SFC? (12-Jan-2018)
Belts and Burqas
Shortly before Christmas, the HK Financial Secretary announced the birth of the first Belt and Road bond in HK, the latest in a line of financial gimmicks designed to avoid meaningful regulatory reforms. (10-Jan-2018)
China Parenting (8361) controllers move 51.6% from CSL Securities to Emperor Securities
CSL Securities is owned by Convoy (1019). Both Convoy and China Parenting are in the "Enigma Network". Non-executive Chairman Ms Li Juan owns 39.9% while CEO Mr Cheng Li owns 11.7%. The two are declared to be acting in concert. (4-Jan-2018)
Mr Chen Qishi deposits 18.75% of Xiangxing (8157) with 2 brokersFirst deposit
The pre-IPO investor bought his shares in Sep-2015 and Jul-2016 at an average HK$0.037 per share. He deposited 13.75% with Chaoshang Securities on 22-Dec and 5.00% with BOCI Securities on 14-Dec. His 6-month lockup expires on 7-Jan-2018. (26-Dec-2017)
Movements in Heng Tai Consumables (0197)
43.82% was moved yesterday from custody of CSL Securities Ltd (a subsidiary of the troubled Convoy (1019)), to Fosun Hani Securities Ltd. The shares exactly match the total held by Lam Kwok Hing, his wife Joecy Lee Choi Lin (totalling 15.28%) and Stephen Chan Cheuk Yu (28.99%). (22-Dec-2017)

Other news

HK & Macau Governments launch cartels for HKZM bridge car permits
HK Government, 13-Feb-2018
There will be just 150 companies and 150 individuals who win a permit to drive from HK into Macau, and 600 in the other direction. HK permanent residents must have a job in Macau or have established a company there. A ballot will be held if there are more than 300 applicants. There will also be a Macau Port park-and-ride scheme with 3000 spaces, but by the time you've driven, parked and ridden, the ferry to CoTai might well be faster. There will also be a monopoly shuttle-bus franchise on the bridge.
ICAC and SFC raided Town Health (3886) offices on 9-Feb
Company announcement, 13-Feb-2018
Comment: this is another step forward in the investigation of the "Enigma Network" which Webb-site first exposed last year.
Police Chief Telecommunications Engineer admits deceiving government of HK$1.9m housing loan and allowances
ICAC, 12-Feb-2018
It turns out that his wife received a low-interest housing loan from her employer, a bank, therefor Mr Wong was ineligible for this benefit, and under the perverse logic of civil service, he should have been paid less than someone in the same position who was not married.
Pine Technology (1079) becomes a money-lender
Company announcement, 12-Feb-2018
Comment: this is never a good sign. Investors should get out while they can.
SFC fines Credit Suisse HK$39.3m for years of regulatory breaches
SFC, 8-Feb-2018
Among other things, the firm settled its own sales using clients' securities on 843 occasions from 2010-2016, made 94 naked short sales, and failed to report over 1200 (weekly) short positions between Jun-2012 and Oct-2014.
Freeman (0279) sells 10.57% of Satinu Resources Group Ltd to Co-Lead Holdings Ltd
Company announcement, 7-Feb-2018
Another deal in what we call the "Chung Nam Network". The purchaser is or was owned by multiple listed companies in the network. Freeman gets HK$150m in cash and the other $600m as a 6-month IOU.
Re: China Lumena New Materials Corp
HK Court of First Instance, 7-Feb-2018
This statement of reasons for decision took over 10 months to produce.
HK School of Motoring fined HK$8k for polluting Shing Mun River
HK Government, 6-Feb-2018
Well that will teach them! The maximum fine is $200k, so this fine is only 4% of that. The HKSM group had revenue of HK$348.54m in 2016, so the fine is about 12 minutes' revenue. HKSM is 70% owned by Cross-Harbour (0032) and 30% by Sun Hung Kai Properties (0016).
SJ v Joshua Wong Chi Fung, Nathan Law Kwun Chung & Alex Chow Yong Kang
HK Court of Final Appeal, 6-Feb-2018
The appeal against the jail sentences imposed by the Court of Appeal succeeds. Magistrate June Cheung Ting Ngan's sentences of community service were not wrong in principle and not manifestly inadequate. They have already been served. The Court of Appeal can set sentencing guidelines but cannot retrospectively apply them. Paragraph 127 of the judgment rebukes certain comments of Court of Appeal VP Wally Yeung in his judgment.
Oriental Press Group Ltd & others v Google
HK Court of Appeal, 6-Feb-2018
Google fails in its appeal to prevent a writ being served on it outside HK. The plaintiffs claim that shortly before 8-Apr-2015, their solicitors searched Google for the Chinese characters for "white powder newspaper" and that the results included 8 links which they say were defamatory to them.
Capital VC (2324) dilutes holders againOptions announcement
Company announcement, 2-Feb-2018
The "Enigma Network" investment company is blowing the general mandate, issuing 19.96% new shares at $0.05, not mentioning the 84.9% discount to Net Asset Value of $0.3308 at 31-Dec-2017. The board claims the issue is "in the interests of the Company and the Shareholders as a whole". The placing agent, Infast Brokerage, is 95% owned by GCPS (8193), another Enigma member. 3 minutes eariler, Capital VC announced a grant of 275m options at $0.058 to unnamed persons. That's another potential 10% enlargement of the share base at an 82.5% discount to NAV. We call on the SFC to direct the Stock Exchange to reject the listing application for all the new shares.
Previously on Webb-site.com
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