News

Former chairman of First Natural Foods (1076) disqualified and ordered to pay HK$84.88m compensation
SFC, 20-Feb-2017
Mr Yeung Chung Lung, his son and son-in-law were absent from the trial and presumably absent from HK, so whether Mr Yeung will pay up, and whether any of them will face criminal charges, remains to be seen.
DBS Bank (Hong Kong) Ltd v Sit Pan Jit
HK Court of Final Appeal, 17-Feb-2017
Mr Sit's application for leave to appeal is dismissed.
Waterworks Inspector of WSD admits misconduct
ICAC, 16-Feb-2017
One proprietor, two quotes: on 14 occassions, Mr Luk obtained quotes from just one sole proprietor trading under two different company names, creating the illusion of choice.
Concentration warning in SingAsia (8293)
SFC, 14-Feb-2017
This is a GEM stock but it did have a public offer when it listed. The top 19 public shareholders now have 83.2% of the float.
Re Anxin-China (1149)
HK Court of First Instance, 9-Feb-2017
The winding-up petition is dismissed.
One INED, two names
Company announcement, 8-Feb-2017
Season Pacific (8127) says an INED has changed her forename, following Webb-site's complaint to HKEX that the INED formerly known as Claire Luk Yung Yung had joined another board, China Bio Cassava (8129) using a different name, Claire Luk Huen Ling.
West Kowloon needs tender care
Webb-site.com, 6-Feb-2017
We urge the board of WKCDA, which was bypassed for months in the planning of the Palace Museum, to put the main architectural services contract out to tender, given that there is still no binding contract with Rocco Yim's company. Let him compete for the work, in line with HK's commitments to free and fair trade under WTO obligations. We estimate the contract size at HK$140m.
My Heart Bodibra listing goes tits-up
Company announcement, 3-Feb-2017
HKEX/SFC are apparently requiring a different distribution of the placing - but that won't turn it into a widely-held stock, so what is the point? Just disclose the distribution, or even the identity of the placees, and let the buyer beware (caveat emptor). The company will keep the market abreast of the situation.
Chim Pui Chung v Apple Daily Ltd & othersMartingale (betting system)
HK Court of First Instance, 3-Feb-2017
Mr Chim wins HK$100k for an article criticising his claim of a winning formula for betting on the 2014 soccer World Cup. No evidence was advanced in defence to show that he was wrong. Mathematicians would recognise his claim to be a Martingale system. Even with no house-edge, the net expected value of the series of bets is zero-win, because although there would be a small net win on most series, there is also a small risk of a huge loss. In reality, no punter has unlimited capital, no house accepts infinite bets, each series of matches comes to an end and every house takes an edge.
Operators jailed for defrauding Employees Retraining Board of HK$250k
ICAC, 27-Jan-2017
Of course, the bigger question is why taxpayers, via the Government, are subsidising beauty parlours by paying for "nail technician training" courses rather than letting employers train them on the job.

Our stories

West Kowloon needs tender care
We urge the board of WKCDA, which was bypassed for months in the planning of the Palace Museum, to put the main architectural services contract out to tender, given that there is still no binding contract with Rocco Yim's company. Let him compete for the work, in line with HK's commitments to free and fair trade under WTO obligations. We estimate the contract size at HK$140m. (6-Feb-2017)
RIP Clare Hollingworth
She was born on the same day as the Republic of China and shipping tycoon Tung Chao Yung. She died today aged 105 years 3 months. (10-Jan-2017)
1539 candidates in under 4 minutes
Today, a few people are choosing even fewer people who will select HK's new Chief Executive. Our compilation shows the details of all 1539 candidates for 1034 seats, including 300 uncontested. Last time, the electorate of the 637 densest seats (lowest electors per seat) was 4,363. There is healthy competition in the largest electorates, including Education and Health Services, but the most they can hope for is to tip the balance if 2 establishment candidates run for the job and Beijing doesn't pick a winner and direct its agents from the small circles accordingly. (11-Dec-2016)
Shenzhen Connect southbound tracking
The Webb-site CCASS Analysis System shows the daily net change in the aggregate stock balances held by mainland investors via Shenzhen Connect. Movements correspond to trades 2 days earlier. (8-Dec-2016)
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)

Other news

Former chairman of First Natural Foods (1076) disqualified and ordered to pay HK$84.88m compensation
SFC, 20-Feb-2017
Mr Yeung Chung Lung, his son and son-in-law were absent from the trial and presumably absent from HK, so whether Mr Yeung will pay up, and whether any of them will face criminal charges, remains to be seen.
DBS Bank (Hong Kong) Ltd v Sit Pan Jit
HK Court of Final Appeal, 17-Feb-2017
Mr Sit's application for leave to appeal is dismissed.
Waterworks Inspector of WSD admits misconduct
ICAC, 16-Feb-2017
One proprietor, two quotes: on 14 occassions, Mr Luk obtained quotes from just one sole proprietor trading under two different company names, creating the illusion of choice.
Concentration warning in SingAsia (8293)
SFC, 14-Feb-2017
This is a GEM stock but it did have a public offer when it listed. The top 19 public shareholders now have 83.2% of the float.
Re Anxin-China (1149)
HK Court of First Instance, 9-Feb-2017
The winding-up petition is dismissed.
One INED, two names
Company announcement, 8-Feb-2017
Season Pacific (8127) says an INED has changed her forename, following Webb-site's complaint to HKEX that the INED formerly known as Claire Luk Yung Yung had joined another board, China Bio Cassava (8129) using a different name, Claire Luk Huen Ling.
Previously on Webb-site.com
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