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Patrick Ho Chi Ping & former Senegal Foreign Minister charged with bribing Chad President & Ugandan Foreign Minister
US Department of Justice, 20-Nov-2017
Goodness, what has Patrick Ho Chi Ping, GBS, JP, former HK Secretary for Home Affairs, been up to? Is another former member of Donald Tsang's cabinet headed for the slammer? More importantly, the DoJ complaint provides insights into Chad's dealings with state-owned PetroChina parent CNPC. Privately-held CEFC China Energy Co Ltd, the ownership of which remains unknown, was apparently trying to get a piece of the action. Ho is Secretary-General of its pseudo-think tank in HK, China Energy Fund Committee Ltd.
Enterprise Dev (1808) to buy 50% of Taiping Securities from China Taiping (0966)CCASS movements
Company announcement, 15-Nov-2017
This is interesting, because it appears from Webb-site CCASS Analysis that Rentian (0885) may have pledged its 38.71% controlling shareholding of Enterprise Dev to Taiping Securities in July this year, something that the announcement does not mention. For the sale, China Taiping would receive new shares and a convertible bond in Enterprise Dev. That raises the question of whether Rentian and China Taiping will be acting in concert to control Enterprise Dev.
If only INEDs were independent
Webb-site.com, 10-Nov-2017
David Webb will be speaking at a conference in HK today. These are his slides, on the most fundamental issue in HK corporate governance.
CSD officer and former prisoner jailed for smuggling items into LCKRC
ICAC, 8-Nov-2017
Tsang Sin Sing supplied facial cleanser and lip balm to prisoner Wong Wai Leung. It was probably a face-saving exercise, but his lips are sealed.
HK Education (1082): directors disappointed
Company announcement, 3-Nov-2017
The company says the purported board meeting to appoint Kevin Ng King Wai and Chan Kwan Yiu was invalid for failure to give proper notice to all members of the Board. Happiness breaks out at a member of the "Engima Network".
Sale by CK Asset (1113) of floors in The Center avoids HK$3.4bn in stamp duty
Company announcement, 1-Nov-2017
They are selling the BVI company which owns the properties via various subsidiaries for $40.2bn. Double Stamp Duty at 8.5% would be payable if they were selling the properties directly. Contrary to media reports, the sale does not involve the whole building. Deals like this beg the question, what is the point of the Government's "Double Stamp Duty" except to penalise those who have not put their properties into companies? Incidentally, the Center is in Sheung Wan, not Central, just as Central Plaza is in Wan Chai.
Ex-UBS associate director Tu Bing convicted of HK$1.46m bribery
ICAC, 27-Oct-2017
The ICAC describes UBS AG Hong Kong Branch as a "foreign" investment bank. We're not sure what point they are trying to make. By the same token HSBC could be described as "foreign" as it is incorporated in the UK with a head office in London. Tu Bing was convicted for fleecing a Shenzhen-based asset management customer for 20% of his trading gains.
Listing Committee censures Sunac China (1918) and 2 EDs
Company announcement, 26-Oct-2017
For having undisclosed agreements over the proposed takeover of Kaisa (1638) which was subsequently aborted.
HKICPA issues "disapproval letter" to PwC and Michael Chan Wai Hong
HKICPA, 26-Oct-2017
HKICPA fails to say which listed company's 2013 Very Substantial Disposal circular was involved. If you know, please tell us. Update 30-Oct-2017: a tipster answers: Xiwang Property (2088). We note that PwC resigned as auditor on 26-Sep-2013, purportedly because they could not reach an agreement on the audit fee. It was replaced by Ernst & Young.

Our stories

If only INEDs were independent
David Webb will be speaking at a conference in HK today. These are his slides, on the most fundamental issue in HK corporate governance. (10-Nov-2017)
The CE's damaging tax proposals: a better approach
The Government proposes distortive gimmicks and loopholes rather than addressing structural issues. Public expenditure has grown faster than GDP, breaching the Basic Law. Revenues have grown even faster, draining capital from the economy. Time to return it. A flat rate of 10% for Profits Tax and Salaries Tax is entirely affordable. What is R&D anyway? New armies of tax consultants and assessors do not make our economy more productive. (24-Oct-2017)
One Board, One Regulator
We respond to HKEX's 2nd attempt to introduce 2nd-class shares via a "New Board", rather than cleaning up its existing boards and transferring listing regulation to the statutory regulator which oversees takeovers, the SFC. Coupled with recent moves to embed the Communist Party in the constitutions of state-controlled enterprises, HK and China risk a toxic combination of no votes for government and no votes for capital, leading to an emerging tycoon-Communist Party oligarchy. We propose a better approach. (7-Aug-2017)
Controlling shareholding of Enterprise Dev (1808) on the move
Webb-site CCASS Analysis shows that 203,854,292 shares (38.73%) of Enterprise Dev have moved from the custody of Kingston Securities Ltd to Taiping Securities (HK) Co Ltd, a subsidiary of China Taiping Insurance (0966). These shares are owned by Rentian (0885) which is controlled by Mr King Pak Fu.Such a move may indicate a pledging of the shares as security for a loan. (31-Jul-2017)
Rebuilding free markets in HK
These slides are from a presentation by David Webb today, on how HK's free markets have eroded during the 20 years since the Handover, and what HK can do to recover its dynamism. (16-Jun-2017)
AAC (2018) announcement seems familiar
AAC, in a rather desperate move, has announced a "strategic cooperation agreement" with CITIC Bank. Where have we seen that before? (9-Jun-2017)
The Enigma Network: 50 stocks not to own
Sometimes, all you need to tell a story is a picture. (15-May-2017)
Holdings in Fullshare (0607) via Shanghai Connect
Nice work by Glaucus Research today in a thorough analysis of the bubble in Fullshare, which also relates to a bubble in Zall (2098) because of their cross-holdings. Webb-site called these bubbles on 5-Aug-2016, and this chart suggests that accumulation of Fullshare by persons on the Southbound train may have propped it up. (25-Apr-2017)
Spilt milk: net CCASS changes after sell-off in China Huishan Dairy (6863)
Trades in Friday morning's collapse were settled yesterday, 28-Mar. We see that mainland investors via Shanghai Connect bought a net 77.6m shares (0.58%), raising their stake to 7.32%, while the biggest net reduction came from Guoyuan Securities Brokerage (HK), 216m shares (1.60%). It's a fair bet that there was a margin call, but we wait for Chairman Yang to reveal all. (29-Mar-2017)
Press statement from WKCDA
Poor transparency: you won't find this on the WKCDA web site, so it's going on ours. We've added a link from the statement to the Procurement Procedures. (22-Feb-2017)
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)

Other news

Patrick Ho Chi Ping & former Senegal Foreign Minister charged with bribing Chad President & Ugandan Foreign Minister
US Department of Justice, 20-Nov-2017
Goodness, what has Patrick Ho Chi Ping, GBS, JP, former HK Secretary for Home Affairs, been up to? Is another former member of Donald Tsang's cabinet headed for the slammer? More importantly, the DoJ complaint provides insights into Chad's dealings with state-owned PetroChina parent CNPC. Privately-held CEFC China Energy Co Ltd, the ownership of which remains unknown, was apparently trying to get a piece of the action. Ho is Secretary-General of its pseudo-think tank in HK, China Energy Fund Committee Ltd.
Enterprise Dev (1808) to buy 50% of Taiping Securities from China Taiping (0966)CCASS movements
Company announcement, 15-Nov-2017
This is interesting, because it appears from Webb-site CCASS Analysis that Rentian (0885) may have pledged its 38.71% controlling shareholding of Enterprise Dev to Taiping Securities in July this year, something that the announcement does not mention. For the sale, China Taiping would receive new shares and a convertible bond in Enterprise Dev. That raises the question of whether Rentian and China Taiping will be acting in concert to control Enterprise Dev.
CSD officer and former prisoner jailed for smuggling items into LCKRC
ICAC, 8-Nov-2017
Tsang Sin Sing supplied facial cleanser and lip balm to prisoner Wong Wai Leung. It was probably a face-saving exercise, but his lips are sealed.
HK Education (1082): directors disappointed
Company announcement, 3-Nov-2017
The company says the purported board meeting to appoint Kevin Ng King Wai and Chan Kwan Yiu was invalid for failure to give proper notice to all members of the Board. Happiness breaks out at a member of the "Engima Network".
Sale by CK Asset (1113) of floors in The Center avoids HK$3.4bn in stamp duty
Company announcement, 1-Nov-2017
They are selling the BVI company which owns the properties via various subsidiaries for $40.2bn. Double Stamp Duty at 8.5% would be payable if they were selling the properties directly. Contrary to media reports, the sale does not involve the whole building. Deals like this beg the question, what is the point of the Government's "Double Stamp Duty" except to penalise those who have not put their properties into companies? Incidentally, the Center is in Sheung Wan, not Central, just as Central Plaza is in Wan Chai.
Previously on Webb-site.com
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