News

Duo guilty of bribery and fraud over AXA insurance policy
ICAC, 29-Apr-2016
An earlier announcement disclosed that the insurance policy was US$2m (HK$15.6m). It earned an up-front commission of HK$1.2m for the agency, CTHK Asset Management Ltd. $0.5m of this made its way to the HSBC staffer, who was only supposed to flog HSBC's prodcuts. The almost 8% front-end fee is a useful reminder of just how inefficient these policies are as a method of savings.
Licence applicant Mr Chiu Sing Ho convicted of providing false information to SFC
SFC, 28-Apr-2016
Mr Chiu had better add this to the list of convictions which he should disclose if he ever applies for an SFC licence again.
SEHK tackles bonus issues, misses the obvious
Webb-site.com, 27-Apr-2016
The Stock Exchange, in a guidance letter tonight, says it will reject listing of bonus issues of 200% or more, because they tie up too much of the float between the ex-date and distribution date. They propose stock splits as an alternative, but they omit the faster and better way to reduce board lot value, which HKEx itself used in 2008.
Law Fei Shing v HKICPA
HK Court of Appeal, 21-Apr-2016
Mr Law fails in an application for extension of time to appeal against a refusal of leave to apply for judicial review. The Court of Appeal is not persuaded that any of his grounds for JR have a reasonable prospect of success. This relates to a pending disciplinary case against him by the HKICPA. The CoA took 10 months to deliver its judgment.
Senior Ambulanceman of FSD admits misconduct
ICAC, 20-Apr-2016
For fixing his GPS device to appear to be in the middle of nowhere, which is no mean feat in HK.
GET (8100) loses corporate records
Company announcement, 19-Apr-2016
Don't you just hate it when that happens?
HKEx cuts hit corporate governance of whole market
Webb-site.com, 18-Apr-2016
A circular slipped out by an HKEx subsidiary, HKSCC, will slash the effective voting window for general meetings, reducing the participation of institutional investors in important decisions such as acquisitions, connected transactions and dilutive share issues. We urge HKEx to rethink this deeply damaging move.
HKICPA fines PwC HK$35k for defective audit on listed company
HKICPA, 13-Apr-2016
The company involved is not named, but you can be certain that the audit fee was many times this amount.
SFC directs suspension of Sound Global (0967)
Company announcement, 13-Apr-2016
This is very unusual and comes less than 3 months after the Stock Exchange allowed trading to resume. The last time the SFC suspended a stock was China High Precision Automation (0591) on 22-Aug-2012, which remains suspended for unknown reasons. The SFC should explain why, or require the company to do so.
Ticket markets and Rugby Sevens finances
Webb-site.com, 10-Apr-2016
Put down your beer jug and take a look at two inter-related problems: the almost non-existent secondary market for event tickets in HK due to an anti-free-market law, and the finances of the Rugby Sevens, which is hoarding cash, underpaying for the HK Stadium, and expecting taxpayers to build another one for at least HK$33.5bn.
China Jicheng (1027) umbrella bubble to split again
Company circular, 8-Apr-2016
There will be 75 billion issued shares, just in case everyone on Earth wants 10 each. The stock at HK$1.20 trades at 42.7x book value and 720x last year's profit.

Our stories

SEHK tackles bonus issues, misses the obvious
The Stock Exchange, in a guidance letter tonight, says it will reject listing of bonus issues of 200% or more, because they tie up too much of the float between the ex-date and distribution date. They propose stock splits as an alternative, but they omit the faster and better way to reduce board lot value, which HKEx itself used in 2008. (27-Apr-2016)
HKEx cuts hit corporate governance of whole market
A circular slipped out by an HKEx subsidiary, HKSCC, will slash the effective voting window for general meetings, reducing the participation of institutional investors in important decisions such as acquisitions, connected transactions and dilutive share issues. We urge HKEx to rethink this deeply damaging move. (18-Apr-2016)
Ticket markets and Rugby Sevens finances
Put down your beer jug and take a look at two inter-related problems: the almost non-existent secondary market for event tickets in HK due to an anti-free-market law, and the finances of the Rugby Sevens, which is hoarding cash, underpaying for the HK Stadium, and expecting taxpayers to build another one for at least HK$33.5bn. (10-Apr-2016)
Submission on Electronic Road Pricing
Speak out! Put market forces to work on the roads. Read our response and then tell the Government whether you agree or not. Consultation ends this Friday, 18-Mar-2016. (12-Mar-2016)
One registration, two companies
Webb-site reveals how a UK company registered in HK and then swapped names with another one, which illegally kept the HK registration. That company is now a subsidiary of UK-listed Cobham plc. (7-Mar-2016)
Preventing cash shells
Webb-site proposes a new Listing Rule to prevent cash shells. The Cash Shell Test introduces equity discipline for existing companies and provides clarity for those proposing transactions and fund-raising. It should be welcomed by investors, regulators, issuers and their advisers. HKEx needs to build a proper sanitation system for this village rather than dig a new cesspit. (3-Mar-2016)
Lerado settlement could be worth $0.066 per share
Lerado has settled its dispute with the buyer of its core business, but fails to state what the positive impact will be on its income statement and net asset value. Webb-site estimates that it will add $255m of profit or $0.066 per share to NAV. (2-Mar-2016)
Tom Lee Music practices not fair play
We look behind an ICAC prosecution of music teachers and find bad practices at the tax-exempt Tom Lee Music Foundation, which requires its teachers to exclusively push products for Tom Lee Music Company. (28-Feb-2016)
E. Bon bonus beggars belief
A proposal to halve the price and double the board lot will also double the minimum bid-offer spread to 1.55%. No competent board could believe that this is in shareholder interests and will enhance liquidity. We call on the SFC and Stock Exchange to act. (19-Feb-2016)
Home Shan't Be China
HSBC's decision to stay put is unsurprising, not just because of the reduced UK bank levy, but because of the risks of moving to what is increasingly seen as one country rather than two systems. (15-Feb-2016)

Other news

Duo guilty of bribery and fraud over AXA insurance policy
ICAC, 29-Apr-2016
An earlier announcement disclosed that the insurance policy was US$2m (HK$15.6m). It earned an up-front commission of HK$1.2m for the agency, CTHK Asset Management Ltd. $0.5m of this made its way to the HSBC staffer, who was only supposed to flog HSBC's prodcuts. The almost 8% front-end fee is a useful reminder of just how inefficient these policies are as a method of savings.
Licence applicant Mr Chiu Sing Ho convicted of providing false information to SFC
SFC, 28-Apr-2016
Mr Chiu had better add this to the list of convictions which he should disclose if he ever applies for an SFC licence again.
Law Fei Shing v HKICPA
HK Court of Appeal, 21-Apr-2016
Mr Law fails in an application for extension of time to appeal against a refusal of leave to apply for judicial review. The Court of Appeal is not persuaded that any of his grounds for JR have a reasonable prospect of success. This relates to a pending disciplinary case against him by the HKICPA. The CoA took 10 months to deliver its judgment.
Senior Ambulanceman of FSD admits misconduct
ICAC, 20-Apr-2016
For fixing his GPS device to appear to be in the middle of nowhere, which is no mean feat in HK.
GET (8100) loses corporate records
Company announcement, 19-Apr-2016
Don't you just hate it when that happens?
HKICPA fines PwC HK$35k for defective audit on listed company
HKICPA, 13-Apr-2016
The company involved is not named, but you can be certain that the audit fee was many times this amount.
Previously on Webb-site.com
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