News

3 months’ jail for accepting HK$15k illegal rebates to place seafood orders
ICAC, 28-Apr-2017
The operator of Daixija Japanese Buffet smelled something fishy in its sashimi section.
Concentration warning in HM (8416)
SFC, 26-Apr-2017
The top 21 holders have 96.15% of the company.
Holdings in Fullshare (0607) via Shanghai Connect
Webb-site.com, 25-Apr-2017
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 person on the Southbound train may have propped it up.
Danway Lo Kwok Kuen v HKSARG
HK Court of Appeal, 25-Apr-2017
Mr Lo wins his appeal. After a disciplinary case, he was "compulsorily retired" from the Police in 1999 and subsequently lost a judicial review and was bankrupted after failing to pay costs. 13 years later, he reached the pension age of 55 and the Government tried to deduct 25% of his benefits to settle the outstanding debt of $520k. The CoA rules that there was no secured debt and , having been discharged from bankruptcy, the debt is extinguished and he is entitled to his full pension.
Roma (8072): Ch & CEO Kelvin Luk Kee Yan arrested by ICAC, quitsClient list
Company announcement, 21-Apr-2017
The arrest is in relation to his "alleged personal involvement in a transaction of one of the clients of the Group". He has resigned "due to his decision to devote more time to his personal endeavours". Roma is a valuer via subsidiary Roma Appraisals Ltd, and a list of HK-listed clients is in Webb-site Who's Who.
GCPS (8193): ED David Yip Chung Wai arrested by ICACClient list
Company announcement, 21-Apr-2017
GCPS, via 80.1% subsidiary Greater China Appraisal Ltd, is a valuer. The other 19.9% is owned by Roma (8072), another valuation group. It is probably not a coincidence that on the same day, Roma has announced that its Chairman and CEO Kelvin Luk Kee Yan has also been arrested by the ICAC.
Larry Jewelry (8351): ED Kelvin Luk Kee Yan quits
Company announcement, 20-Apr-2017
He has resigned "due to his personal commitments". The company does not mention that Mr Luk has been arrested by the ICAC. Mr Luk has simultaneously resigned as Chairman and CEO of Roma (8072).
Concentration warning in China Hengshi (1197)
SFC, 20-Apr-2017
The top 20 holders have 95.84% of the company. And yes, there was a public offer in this listing.
Does HK's land sale system need a new lease of life?HK Land Lease Reform
South China Morning Post, 18-Apr-2017
Shirley Zhao's article covers our proposals for Land Lease Reform published on 1-Nov-2010 (at the second link). Let's hope that the new CE puts that into effect.
HKSARG continues effort to reduce supply of residential rental units
HK Government, 11-Apr-2017
Yes, that's what they're doing, by insisting that unless you pay punitive stamp duty, you can only own 1 flat, which you will probably occupy, and meanwhile, if you are moving to HK, you can't own one for 7 years until you become a permanent resident, so you have to rent, if you can find an owner who doesn't occupy their flat.
MMT doesn't find market misconduct in CITIC (0267)'s 2008 circular
SFC, 10-Apr-2017
The MMT says the SFC failed to show that the statement of "no material adverse change" (MAC) caused the price to remain stable, and it is irrelevant that if the huge FX loss had been disclosed, it would have crashed the price. The SFC in our view erred in focussing on the "financial position" (the balance sheet) and ignoring the "trading position" (the income statement). The MMT says there hadn't been a MAC in the financial position as the loss, while price-sensitive, was bearable. That's wrong in our view because it takes a creditor's view rather than a shareholder's view of what is materially adverse, and the Listing Rules were written primarily for equities. The MMT didn't examine whether there was a MAC in the trading position, because the SFC didn't ask them to. Time has moved on - it is now civil Market Misconduct to fail to disclose price-sensitive Inside Information, but in 2008 it was just a breach of the Listing Rules.
China Demeter (8120) blows 10% share option scheme in one go
Company announcement, 7-Apr-2017
What the announcement doesn't say: each of 10 participants, including 4 "consultants", gets options equal to 1% of the existing issued shares, exercisable for 1 year. A similar 10% grant (then 59m shares) was made 10 months ago, on 10-Jun-2016. All of those options were exercised 26 days later, diluting existing shareholders.

Our stories

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 person 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)
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)

Other news

3 months’ jail for accepting HK$15k illegal rebates to place seafood orders
ICAC, 28-Apr-2017
The operator of Daixija Japanese Buffet smelled something fishy in its sashimi section.
Concentration warning in HM (8416)
SFC, 26-Apr-2017
The top 21 holders have 96.15% of the company.
Danway Lo Kwok Kuen v HKSARG
HK Court of Appeal, 25-Apr-2017
Mr Lo wins his appeal. After a disciplinary case, he was "compulsorily retired" from the Police in 1999 and subsequently lost a judicial review and was bankrupted after failing to pay costs. 13 years later, he reached the pension age of 55 and the Government tried to deduct 25% of his benefits to settle the outstanding debt of $520k. The CoA rules that there was no secured debt and , having been discharged from bankruptcy, the debt is extinguished and he is entitled to his full pension.
Roma (8072): Ch & CEO Kelvin Luk Kee Yan arrested by ICAC, quitsClient list
Company announcement, 21-Apr-2017
The arrest is in relation to his "alleged personal involvement in a transaction of one of the clients of the Group". He has resigned "due to his decision to devote more time to his personal endeavours". Roma is a valuer via subsidiary Roma Appraisals Ltd, and a list of HK-listed clients is in Webb-site Who's Who.
GCPS (8193): ED David Yip Chung Wai arrested by ICACClient list
Company announcement, 21-Apr-2017
GCPS, via 80.1% subsidiary Greater China Appraisal Ltd, is a valuer. The other 19.9% is owned by Roma (8072), another valuation group. It is probably not a coincidence that on the same day, Roma has announced that its Chairman and CEO Kelvin Luk Kee Yan has also been arrested by the ICAC.
Larry Jewelry (8351): ED Kelvin Luk Kee Yan quits
Company announcement, 20-Apr-2017
He has resigned "due to his personal commitments". The company does not mention that Mr Luk has been arrested by the ICAC. Mr Luk has simultaneously resigned as Chairman and CEO of Roma (8072).
Concentration warning in China Hengshi (1197)
SFC, 20-Apr-2017
The top 20 holders have 95.84% of the company. And yes, there was a public offer in this listing.
Does HK's land sale system need a new lease of life?HK Land Lease Reform
South China Morning Post, 18-Apr-2017
Shirley Zhao's article covers our proposals for Land Lease Reform published on 1-Nov-2010 (at the second link). Let's hope that the new CE puts that into effect.
HKSARG continues effort to reduce supply of residential rental units
HK Government, 11-Apr-2017
Yes, that's what they're doing, by insisting that unless you pay punitive stamp duty, you can only own 1 flat, which you will probably occupy, and meanwhile, if you are moving to HK, you can't own one for 7 years until you become a permanent resident, so you have to rent, if you can find an owner who doesn't occupy their flat.
Previously on Webb-site.com
Check out our full list of articles in the archive, since our launch in 1998.

Sign up for our free newsletter

Recommend Webb-site to a friend

Copyright & disclaimer, Privacy policy

Back to top