News

Sau San Tong (8200) appoints new CEO, exactly 1 year ago
Company announcement, 1-Dec-2016
No, it's not a typo. This follows a complaint by Webb-site to HKEX that SST had failed to announce the appointment. We note that the not-so-new CEO, aged 33, has an honorary doctorate from "International American University, U.S.A.", an unaccredited institution.
DX.com (8086) buys Full Profit Property Services Co Ltd from Finsoft (8018) for HK$20mFinsoft announcement
Company announcement, 1-Dec-2016
Finsoft bought it for HK$6m on 30-Dec-2015 from Jia Meng (8101). Disclosure on "discloseable transactions" in HK is so minimal that it is impossible to tell whether the surge in profits represents 1-time items (such as gains on listed securities) or not.
Application proof of Head & Shoulders Financial Group Ltd dated 8-Apr-2016
Company filing, 1-Dec-2016
Questions have arisen about the ability of Head and Shoulders Global Investment Fund SPC to back a multi-billion C$ bid for Canadian online gambling firm Amaya Inc.. H&S filed this document for a GEM listing application, now lapsed. HKEX deletes such documents from its site, but Webb-site is republishing it in the interests of transparency, something that HK is not very good at. At 31-Dec-2015, the combined assets under management, including the fund, were HK$615m.
Enterprise Development (1808) admits investment in Joint Global LtdThe Joint Global implosion
Company announcement, 30-Nov-2016
This follows our article "The Joint Global implosion" in which we noted that ED had swapped its shares in HECC for shares in an unnamed company which had then been fully impaired.
Skyway (1141) sells 2 Lincoln Road to CSPT (0139)CSPT announcement
Company announcement, 28-Nov-2016
CSPT owns 15.48% of Skyway and is paying with bonds convertible into 11.11% of CSPT, while Skyway owns 13.56% of CSPT, so this potentially increases the cross-holding. The sale values the property at HK$406m. They are selling the BVI company that indirectly owns the property, thereby avoiding all stamp duties. Skyway only acquired this company on 4-Mar-2016, so if it had bought and sold the property, the sale would have attracted 15% Special Stamp Duty, 15% Stamp Duty and 15% Buyer's Stamp Duty, a total of 45%, if anyone was mad enough to transact on those terms.
Mainlander charged with bribing HK immigration officers
ICAC, 28-Nov-2016
Well, that's one way to get into HK, as long as you don't mind going straight into custody.
Company shareholder in court over attempting to pervert justice
ICAC, 24-Nov-2016
We note that a HK company called "The Tribe Limited" changed its name to "The Molecule Marketing Limited" on 10-Nov-2015. There is no HK company currently called "The Tribe Limited".
9 months’ jail for bribery and fraud over employment of bar benders
ICAC, 23-Nov-2016
The Housing Authority contractor was paying H$1930 per day for a bar bender, but the worker was apparently willing to work for only HK$1330 per day net of kickback.
Sashimi supplier admits kickbacks
ICAC, 22-Nov-2016
When its margins declined, Daixija Japanese Buffet smelled something fishy. A supervisor and 3 staff of its sashimi section quit together. No doubt the ICAC will be trawling for them too.
SFC bans Benedict Ku Ka Tat for 1 year, fines him HK$150k
SFC, 21-Nov-2016
We note that last year, the SFC fined The Pride Fund Management Ltd (controlled by Louis Wan Mun Wah) HK$400k for failure to enter mediation at the Financial Dispute Resolution Centre with the client, Ms Ha Sze Wan. Our records show that the BVI company to which she paid the 15% commission (of which Mr Ku received 12%), Lizauli Investments Ltd, was struck off on 31-May-2010. We don't know who owned that, and the SFC calls him or her "X".
BlackRock to launch "Hong Kong’s cheapest Hang Seng Index ETF"Prospectus
South China Morning Post, 17-Nov-2016
The fund (3115) will charge 0.09% p.a. compared with 0.10% for TraHK (2800), but the board lot is HK$800, versus $11,200 for TraHK. HKEX charges $1.5 per board lot on increases in holdings between book closure dates, so the extra 13 board lots to reach $11,200 in the Blackrock fund will cost $19.50 (or more if your broker marks up the fee). That is 0.17%, so unless you plan to hold for at least 17 years, TraHK will still be cheaper overall for any sensible investment size. Webb-site is surprised that Blackrock has chosen such a small board lot.
Union Asia (8173) coughs up details of investments at 30-Sep-2016
Company announcement, 17-Nov-2016
This follows a Webb-site complaint to HKEX on 14-Nov-2016 and reveals sub-5% holdings in eForce (0943), Trillion Grand (8103), Inno-Tech (8202) and Celebrate (8212), amongst others.
Union Church v London Missionary Society
HK Court of First Instance, 17-Nov-2016
In something of a charade, both sides submit, and the court declares, that the church's site on Kennedy Road will not revert to the LMS when it is redeveloped into a 22-storey building. Henderson Land will develop the site and receive 26 apartments, while the Church gets the bottom 6 floors and 19 apartments. They shall not want.
HKICPA fines Ernst & Young, Bennett Wai Siu Hung & Augustine Tong Ka Yan
HKICPA, 15-Nov-2016
HKICPA fails to name the listed company involved. Update: A source tells Webb-site it is CW Group holdings Ltd (1322).

Our stories

Andrew Left and the right to be wrong
We take a close look at the Market Misconduct Tribunal's report on Mr Left's erroneous criticism of China Evergrande (3333), and what that says about free speech amongst participants in the HK market. (23-Oct-2016)
Open letter to the board of Ming Fai (3828) from David Webb
Webb-site founder David Webb owns almost 10% of Ming Fai and calls for a special dividend of at least $0.352 per share to reduce net cash to not more than HK$300m (34% of net assets) after the sale of the investment property, which we support. Ming Fai has a strong core business, but if the current board, which holds 33% of Ming Fai, doesn't do the right thing then we will nominate directors who will. (19-Oct-2016)
SFC warns market on CIFG (0412)
Following Webb-site's bubble warning on 26-Sep-2016, the SFC has conducted an ownership investigation. (13-Oct-2016)
Alleged hacked BOCI account explains Pa Shun Pharma (0574) surge
A Cyberport-based investment company alleges that an unauthorised person logged into its BOCI account and bought up 4.92% of PSP at an average 36% above the previous day's close, draining its account of about HK$37.7m. The SFC has today commenced a general cybersecurity review on brokers' systems after 16 incidents in the last 12 months involving over HK$100m. (13-Oct-2016)
Hiding behind the cornerstones
Webb-site reveals that investors who took 31% of a bank IPO had secretly laid off their risk by issuing derivatives to a mainland property developer from the same city, via two HK-listed companies which incidentally are bubble stocks. When we complained, HKEX did not require disclosure of the bank’s identity, thereby preserving the secrecy behind the cornerstone investors which facilitate HKEX’s IPO business. Once again, the regulatory conflict of interest is exposed. (3-Oct-2016)
China Innovative Finance (0412) bubble
Hao Tian Development (0474) has confirmed our view by dumping 9.06% of CIFG at a 61.9% discount, still well above the net tangible asset value of $0.099. CIFG should trade below NTAV due to its appalling governance and membership of what we call the "Chung Nam Network". The purported profits of its leasing division are largely illusory and depend heavily on 1 customer in which CIFG has invested. HTD has also been allowed by HKEX to skirt the Listing Rules on corporate transactions. (26-Sep-2016)
Submission to SFC-HKEX consultation on listing regulation
These are our views on SFC-HKEX proposals to reform regulation of listings and listed companies. If you are an investor who cares about the future of HK's markets, please submit your support. The proposals are better than the status quo, but a political compromise on the 2003 Expert Group recommendation to transfer regulation to the SFC, and that should be Plan B. (6-Sep-2016)
A sordid electoral affair
The HK Government, via its Electoral Affairs Commission, has tarnished HK's reputation for free and fair geographic elections for half of its Legislative Council, just to exclude a few candidates who were previously on the political fringe. There is nothing inconsistent between pledging to uphold the constitution and seeking to change it, and the Government now risks the courts overturning the election results. We also explain the fragmentation caused by HK's version of the party list system which has now reached epic proportions. (17-Aug-2016)
Tech Pro (3823) crashes 86.3%: we told you so
In our article of 24-Sep-2015, we pointed to 3 bubbles, 2 of which have now burst: L & A (8195) and Tech Pro (3823). The remaining one is umbrella-maker China Jicheng (1027) which has net tangible assets at 31-Dec-2015 of about HK$0.0067 per share (post-split), so it has about 97% downside from today's closing price of $0.224. (28-Jul-2016)
Submission to Public Engagement Exercise on Retirement Protection
We call for abolition of non-means-tested schemes, staggered subsidies for public healthcare and a deployment of the savings on a higher socal safety net and better healthcare. HK can't pursue a universal handout without breaching the Basic Law, and even if it could, the Laffer Curve may make it unsustainable as taxable profits and earnings would shift away. Finally, the MPF is a costly interventionist failure that should be scrapped, and if it is not, then LSP must be phased out to allow full portability of MPF assets. (21-Jun-2016)

Other news

Sau San Tong (8200) appoints new CEO, exactly 1 year ago
Company announcement, 1-Dec-2016
No, it's not a typo. This follows a complaint by Webb-site to HKEX that SST had failed to announce the appointment. We note that the not-so-new CEO, aged 33, has an honorary doctorate from "International American University, U.S.A.", an unaccredited institution.
DX.com (8086) buys Full Profit Property Services Co Ltd from Finsoft (8018) for HK$20mFinsoft announcement
Company announcement, 1-Dec-2016
Finsoft bought it for HK$6m on 30-Dec-2015 from Jia Meng (8101). Disclosure on "discloseable transactions" in HK is so minimal that it is impossible to tell whether the surge in profits represents 1-time items (such as gains on listed securities) or not.
Application proof of Head & Shoulders Financial Group Ltd dated 8-Apr-2016
Company filing, 1-Dec-2016
Questions have arisen about the ability of Head and Shoulders Global Investment Fund SPC to back a multi-billion C$ bid for Canadian online gambling firm Amaya Inc.. H&S filed this document for a GEM listing application, now lapsed. HKEX deletes such documents from its site, but Webb-site is republishing it in the interests of transparency, something that HK is not very good at. At 31-Dec-2015, the combined assets under management, including the fund, were HK$615m.
Enterprise Development (1808) admits investment in Joint Global LtdThe Joint Global implosion
Company announcement, 30-Nov-2016
This follows our article "The Joint Global implosion" in which we noted that ED had swapped its shares in HECC for shares in an unnamed company which had then been fully impaired.
Skyway (1141) sells 2 Lincoln Road to CSPT (0139)CSPT announcement
Company announcement, 28-Nov-2016
CSPT owns 15.48% of Skyway and is paying with bonds convertible into 11.11% of CSPT, while Skyway owns 13.56% of CSPT, so this potentially increases the cross-holding. The sale values the property at HK$406m. They are selling the BVI company that indirectly owns the property, thereby avoiding all stamp duties. Skyway only acquired this company on 4-Mar-2016, so if it had bought and sold the property, the sale would have attracted 15% Special Stamp Duty, 15% Stamp Duty and 15% Buyer's Stamp Duty, a total of 45%, if anyone was mad enough to transact on those terms.
Mainlander charged with bribing HK immigration officers
ICAC, 28-Nov-2016
Well, that's one way to get into HK, as long as you don't mind going straight into custody.
Company shareholder in court over attempting to pervert justice
ICAC, 24-Nov-2016
We note that a HK company called "The Tribe Limited" changed its name to "The Molecule Marketing Limited" on 10-Nov-2015. There is no HK company currently called "The Tribe Limited".
9 months’ jail for bribery and fraud over employment of bar benders
ICAC, 23-Nov-2016
The Housing Authority contractor was paying H$1930 per day for a bar bender, but the worker was apparently willing to work for only HK$1330 per day net of kickback.
Sashimi supplier admits kickbacks
ICAC, 22-Nov-2016
When its margins declined, Daixija Japanese Buffet smelled something fishy. A supervisor and 3 staff of its sashimi section quit together. No doubt the ICAC will be trawling for them too.
SFC bans Benedict Ku Ka Tat for 1 year, fines him HK$150k
SFC, 21-Nov-2016
We note that last year, the SFC fined The Pride Fund Management Ltd (controlled by Louis Wan Mun Wah) HK$400k for failure to enter mediation at the Financial Dispute Resolution Centre with the client, Ms Ha Sze Wan. Our records show that the BVI company to which she paid the 15% commission (of which Mr Ku received 12%), Lizauli Investments Ltd, was struck off on 31-May-2010. We don't know who owned that, and the SFC calls him or her "X".
Previously on Webb-site.com
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