News

AXA China Region again allegedly conned into paying commissions
ICAC, 1-Feb-2023
Yuki Fan Ting Yan is charged with defrauding AXA of HK$1.9m in commissions and bonuses. As long as the industry offers large up-front rewards built into product prices, it will keep the ICAC busy at taxpayers' expense. Insurers should pay the ICAC a commission too.
Alvin Chau: Macau gambling kingpin jailed for 18 yearsHall of Shame
BBC, 18-Jan-2023
And with that, the former Chairman of 3 HK-listed companies is inducted into our "Hall of Shame".
Sanction of Agritrade Resources (ex-1131) and 5 directorsRelated announcement
SEHK, 16-Jan-2023
Mr Ashok Kumar Sahoo basically helped himself to a 15% stake in the group's Indian power plant and without telling the other directors or obtaining shareholders' approval. 3 of the directors are sanctioned for failing to co-operate with the investigation.
Sanctions against 2 more executive directors of Inno-Tech (ex-8202)
SEHK, 12-Jan-2023
For failure to co-operate with an investigation by the for-profit, toothless regulator. Increasingly, that seems to be the most popular response amongst directors of failed companies as they have no realistic prospect of returning to the HK market. By the way, Webb-site warned investors about this stock 11 years ago.
Censure of Fusen Pharma (1652) and 5 directors
SEHK, 4-Jan-2023
The firm was listed in mid-2018 after raising HK$397m. It spent most of 2019 siphoning off RMB258m in unapproved "advances" to a company half-owned by Cao Changcheng, the founder, Chairman and controlling shareholder of Fusen Pharma. The funds were (apparently) repaid by Christmas Day that year.
Leung Chun Ying v Chung Kim Wah & Best Pencil (HK) Ltd (dba Stand News)
HK Court of First Instance, 23-Dec-2022
The defamation suit by Mr Leung, former Chief Executive, will now be heard without a jury because nobody paid the required deposit in time.
SFC fines Guosen Securities HK$2.8m over regulatory breachesStatement of Disciplinary Action
SFC, 21-Dec-2022
Largely due to inadequate testing of buggy software.
SFC bans Ms Sun Yiding for 8 monthsStatement of Disciplinary Action
SFC, 19-Dec-2022
For operating an external brokerage account, in which she conducted 829 trades worth HK$47.4m in a year, including 3 stocks on a Restricted List, without disclosure or pre-clearance.
SFC fines Mr Chung Tung Sau, ex-China Tonghai Securities, HK$60k, suspends him for 7 monthsStatement of Disciplinary Action
SFC, 15-Dec-2022
For front-running a client's order from 1-11 Aug-2017. Our records indicate that he left China Tonghai (then known as Quam) on 31-Aug-2017 and joined Zhongtai International Securities on 24-Oct-2017, ceasing to represent them the day before this announcement.
SFC suspends Wang Pei Yi, ex-SinoPac Securities, for 10 monthsStatement of Disciplinary Action
SFC, 15-Dec-2022
For false declarations that she had met the representatives of 3 corporate clients and witnessed their signatures on the account-opening forms.
Sanction of Raffles Interior (1376) and directors
SEHK, 12-Dec-2022
Most of the IPO proceeds were quickly diverted into asset management and services which had questionable rationale.
Senior District Director of insurer AIA charged with accepting HK$360k luxury gifts from down-liners for clients
ICAC, 9-Dec-2022
Two Hermes handbags purportedly worth over HK$160k each and a Bvlgari necklace - but she's not accused of poor taste. Once again, the takeaway for life insurance clients should be "insurers can afford such large commissions out of my money - so why am I buying this"?
Dummy ex-Chubb Life insurance agent admits money laundering for handling HK$270k commissions
ICAC, 7-Dec-2022
The unnamed ringleaders are apparently still at large. The ICAC says "Two insurance agents of Chubb, including a cousin of his, had recruited him to take part in the scam".
Blue River (0498) grants HK$150m loan facility to Green River Associates Ltd
Company announcement, 7-Dec-2022
Can a Cyan River be far away? The announcement reveals that CST (0985) now owns 17.35% of Green River. It was formerly 100% owned by Planetree (0613) which in 2020 sold 60% (now 49.59%) to Alice Yu Man Fung. At the time, Planetree stated that Ms Yu and Karen Lo Ki Yan, controlling shareholder of Planetree, "have known each other for many years".
Sanction of Xinyuan Property Management (1895) and 4 directors
SEHK, 5-Dec-2022
The Exchange is having trouble keeping up with this company: the directors involved in these transactions to prop up the controlling shareholder have left the board, but another announcement on 15-Nov-2022 revealed yet more problems - a bunch of time deposits pledged to support bank loans to the controlling shareholder, and the stock, which was only listed in Oct-2019, is suspended again.
Sanction of REXLot (ex-0555) and 5 directors
SEHK, 5-Dec-2022
CNY210m of "earnest money" and HK$1.7bn of "deposits for potential acquisitions", the latter arranged by Victor Chan How Chung, were purportedly unrecoverable because new PRC regulations "rendered internet lottery unlawful".
Sanction of 7 current/ex-directors of Christine (1210)
SEHK, 1-Dec-2022
For propping up a company owned by the then Chairman's sister with a de facto loan.
PECS Register monthly update
HK Government, 30-Nov-2022
Statement by CE John Lee on requesting interpretation of NSL from NPCSC
HK Government, 28-Nov-2022
You might think that having a leading human rights lawyer of his choice would add legitimacy to the goal of locking up Jimmy Lai for life. You'd be wrong. Predictably, within hours of the Court of [Semi-] Final Appeal's dismissal of the SJ's appeal against the admission of overseas counsel, the CE asks for an "interpretation" by the NPCSC. This will be rather awkward for the courts below, having unanimously upheld that it is "clearly in the public interest to admit an overseas specialist as eminent as Mr Owen so that the court will have the best assistance to tackle the formidable task at hand."
Re admission of Timothy Wynn Owen KC to defend Jimmy Lai Chee Ying in NSL case
HK Court of Final Appeal, 28-Nov-2022
Application for leave to appeal is dismissed. The court writes: "in relation to ad hoc admissions, where national security considerations properly arise, such considerations are plainly of the highest importance to be taken into account. In the present case, however, the SJ has fundamentally changed his case only at the stage of seeking leave to appeal to this Court, raising undefined and unsubstantiated issues said to involve national security which were not mentioned or explored in the Courts below."
Suspected syndicate leader charged in connection with ramp-and dump schemes
SFC, 24-Nov-2022
Mr Tam, whose SFC licence was revoked in 2003 for rat-trading and other malpractices, featured in our article "Bubbles and troubles in Hong Kong" in Sep-2015, which featured several listed companies in what became our "Enigma Network" of 2017. The current charges relate to alleged activity in shares of 2 listed companies in 2018-2019.
Court orders HK Wan Kiu Investment Co Ltd and its connected entities to compensate clients
SFC, 23-Nov-2022
No childish jokes please. The case against Wan Kiu and its owner-cum-director, Mrs Sham, reaches its climax. The SFC found that she created sham documents and account statements to conceal unauthorised sales of client securities, and then "misappropriated" the proceeds partly to Sham & Partners Ltd, owned by her son Christopher.
Censure of China Bright Culture (1859) and Mr Liu Mu; criticism of Mr Xia Rui
SEHK, 21-Nov-2022
For diverting most of the IPO proceeds into a promissory note arranged by AMTD Global Markets Ltd, which was a Joint Global Coordinator of the IPO. The note was issued by L.R. Capital Property Investment Ltd, which was "affiliated" with AMTD, although the Exchange doesn't say how.
Re admission of Timothy Wynn Owen KC to defend Jimmy Lai Chee Ying in NSL case
HK Court of Appeal, 21-Nov-2022
Leave to appeal to the CFA is refused. Now on his 4th Senior Counsel, the SJ is represented by former SJ Rimsky Yuen. Biting the cherry again, he claims 2 new points (which should've been raised in the first instance): (1) that overseas counsel might leak State Secrets and are not subject to local discipline - but the NSL has global effect, and England & Wales Barristers are subject to global regulation under their Bar Standards Handbook; and (2) that there should be a presumption against overseas counsel in NSL cases. The court writes "Contrary to Mr Yuen’s submission that he seeks to establish matters of principle, we consider this an unprincipled approach and goes against the grain of guiding principles for the exercise of judicial discretion. It is an untenable proposition".
Duncan Chui Tak Keung declared bankrupt
HK Court of First Instance, 17-Nov-2022
Hao Wen (8019): certain regulatory authorities attended an HK office on 9-Nov
Company announcement, 15-Nov-2022
The uncertain authorities would be the ICAC and SFC, based on their announcements of 10-Nov.
CBK (8428): a regulatory authority attended the head office in HK on 9-Nov
Company announcement, 11-Nov-2022
This was probably the SFC or ICAC, given the large joint raid they announced yesterday.

Our stories

At last, the Webb-site HKSAR Accounts Explorer
In honour of the 25th anniversary of the SAR, a new tool to deep-dive into its financial history. This may be our last major project, but we hope you will agree that it was worth the time. (14-Jun-2022)
HK is running out of time to re-join the World
As our Editor sits in the air-lock waiting to re-enter HK, he looks at the now-unconstitutional quarantine regulations and the harm they are doing to HK. (5-May-2022)
A manifesto for Hong Kong
If you're going to be Chief Executive and you don't have a manifesto or any policy expertise beyond Security, Webb-site is here to help! (13-Apr-2022)
Employment Support Scheme: the final outcome
After information requests by Webb-site, we reveal that HK's largest ever corporate handout went over-budget by about HK$10bn to a final tally of HK$90.5bn (US$11.6bn) plus costs. We produce a final list of approved claims. (13-Feb-2022)
Yorkey (2788): a successful outcome
Webb-site recommends shareholders to vote in favour of the increased offer, as founder David Webb has undertaken to do. Here's the background to our decision. (20-Jan-2022)
Joining the dots on the ICAC case against Chim Pui Chung and others
The ex-legislator is once again facing criminal charges, this time with his son and others. We examine the past connections between the defendants and the connection between an alleged co-conspirator and one of the subscribers of convertible notes, who has not been charged. (21-Nov-2021)
Raising the Yorkey bar
What are we going to do about the proposed privatisation of Yorkey (2788)? (21-Oct-2021)
Observations on Next Digital (0282)
A Financial Inspector has not been appointed in HK since last century, before the SFC gained new powers under the SFO in 2003. Now, Financial Secretary Paul Chan, who will neither confirm nor deny plans to run for CE, is throwing this redundant tool at Next Digital. (28-Jul-2021)
30 years in Hong Kong
This seems like a suitable time for an update from our founder. (15-Jul-2021)
Carrie Lam, Broadcaster-in-Chief
Contradicting a 2018 statement to LegCo, the HK Govt is now in the TV distribution business, removing competition and exclusivity by buying the Tokyo Olympics with your tax dollars and sublicensing them for free, risking a thinning-out of coverage. What next? (11-May-2021)
SFC launches Govt welfare scheme for property tycoons
Well, not all tycoons, only larger ones. (10-May-2021)
The long-awaited Law Reform Commission report on an archives law
With RTHK, a Government Department, currently destroying its online archives, we asked the LRC why there has been no report 26 months after a consultation on an archives law closed. Here is their response. (6-May-2021)
How to end HK's border lockdown
HK's economic recovery depends on fully re-opening its borders, but it can't when so few have been vaccinated. With near-zero COVID, we must use other vaccination incentives. We propose a 4-pronged solution, including a VacciLottery and an inbound travel exemption. (27-Apr-2021)
Government misled LegCo over HKIDs
A quick Sunday search using a single popular name finds 8 pairs of matching masked HKIDs in the Companies Registry. There must be hundreds or thousands of other such pairs on other names - yet the Government claimed on Friday that it could only find 8 in the entire database. (Updated 13-Apr). (12-Apr-2021)
HK's inbound quarantine laws: dangerous, irrational and unconstitutional
We put our microscope on HK's inbound quarantine laws and find that the 21-day length of quarantine actually increases the risk to the community, Further, the ban on arrivals from 4 countries is irrational. Both fail to satisfy constitutional tests of proportionality. (16-Mar-2021)

Other news

AXA China Region again allegedly conned into paying commissions
ICAC, 1-Feb-2023
Yuki Fan Ting Yan is charged with defrauding AXA of HK$1.9m in commissions and bonuses. As long as the industry offers large up-front rewards built into product prices, it will keep the ICAC busy at taxpayers' expense. Insurers should pay the ICAC a commission too.
Alvin Chau: Macau gambling kingpin jailed for 18 yearsHall of Shame
BBC, 18-Jan-2023
And with that, the former Chairman of 3 HK-listed companies is inducted into our "Hall of Shame".
Sanction of Agritrade Resources (ex-1131) and 5 directorsRelated announcement
SEHK, 16-Jan-2023
Mr Ashok Kumar Sahoo basically helped himself to a 15% stake in the group's Indian power plant and without telling the other directors or obtaining shareholders' approval. 3 of the directors are sanctioned for failing to co-operate with the investigation.
Sanctions against 2 more executive directors of Inno-Tech (ex-8202)
SEHK, 12-Jan-2023
For failure to co-operate with an investigation by the for-profit, toothless regulator. Increasingly, that seems to be the most popular response amongst directors of failed companies as they have no realistic prospect of returning to the HK market. By the way, Webb-site warned investors about this stock 11 years ago.
Censure of Fusen Pharma (1652) and 5 directors
SEHK, 4-Jan-2023
The firm was listed in mid-2018 after raising HK$397m. It spent most of 2019 siphoning off RMB258m in unapproved "advances" to a company half-owned by Cao Changcheng, the founder, Chairman and controlling shareholder of Fusen Pharma. The funds were (apparently) repaid by Christmas Day that year.
Leung Chun Ying v Chung Kim Wah & Best Pencil (HK) Ltd (dba Stand News)
HK Court of First Instance, 23-Dec-2022
The defamation suit by Mr Leung, former Chief Executive, will now be heard without a jury because nobody paid the required deposit in time.
SFC fines Guosen Securities HK$2.8m over regulatory breachesStatement of Disciplinary Action
SFC, 21-Dec-2022
Largely due to inadequate testing of buggy software.
SFC bans Ms Sun Yiding for 8 monthsStatement of Disciplinary Action
SFC, 19-Dec-2022
For operating an external brokerage account, in which she conducted 829 trades worth HK$47.4m in a year, including 3 stocks on a Restricted List, without disclosure or pre-clearance.
SFC fines Mr Chung Tung Sau, ex-China Tonghai Securities, HK$60k, suspends him for 7 monthsStatement of Disciplinary Action
SFC, 15-Dec-2022
For front-running a client's order from 1-11 Aug-2017. Our records indicate that he left China Tonghai (then known as Quam) on 31-Aug-2017 and joined Zhongtai International Securities on 24-Oct-2017, ceasing to represent them the day before this announcement.
SFC suspends Wang Pei Yi, ex-SinoPac Securities, for 10 monthsStatement of Disciplinary Action
SFC, 15-Dec-2022
For false declarations that she had met the representatives of 3 corporate clients and witnessed their signatures on the account-opening forms.
Sanction of Raffles Interior (1376) and directors
SEHK, 12-Dec-2022
Most of the IPO proceeds were quickly diverted into asset management and services which had questionable rationale.
Senior District Director of insurer AIA charged with accepting HK$360k luxury gifts from down-liners for clients
ICAC, 9-Dec-2022
Two Hermes handbags purportedly worth over HK$160k each and a Bvlgari necklace - but she's not accused of poor taste. Once again, the takeaway for life insurance clients should be "insurers can afford such large commissions out of my money - so why am I buying this"?
Dummy ex-Chubb Life insurance agent admits money laundering for handling HK$270k commissions
ICAC, 7-Dec-2022
The unnamed ringleaders are apparently still at large. The ICAC says "Two insurance agents of Chubb, including a cousin of his, had recruited him to take part in the scam".
Blue River (0498) grants HK$150m loan facility to Green River Associates Ltd
Company announcement, 7-Dec-2022
Can a Cyan River be far away? The announcement reveals that CST (0985) now owns 17.35% of Green River. It was formerly 100% owned by Planetree (0613) which in 2020 sold 60% (now 49.59%) to Alice Yu Man Fung. At the time, Planetree stated that Ms Yu and Karen Lo Ki Yan, controlling shareholder of Planetree, "have known each other for many years".
Sanction of Xinyuan Property Management (1895) and 4 directors
SEHK, 5-Dec-2022
The Exchange is having trouble keeping up with this company: the directors involved in these transactions to prop up the controlling shareholder have left the board, but another announcement on 15-Nov-2022 revealed yet more problems - a bunch of time deposits pledged to support bank loans to the controlling shareholder, and the stock, which was only listed in Oct-2019, is suspended again.
Sanction of REXLot (ex-0555) and 5 directors
SEHK, 5-Dec-2022
CNY210m of "earnest money" and HK$1.7bn of "deposits for potential acquisitions", the latter arranged by Victor Chan How Chung, were purportedly unrecoverable because new PRC regulations "rendered internet lottery unlawful".
Sanction of 7 current/ex-directors of Christine (1210)
SEHK, 1-Dec-2022
For propping up a company owned by the then Chairman's sister with a de facto loan.
PECS Register monthly update
HK Government, 30-Nov-2022
Previously on Webb-site.com
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