News
Judge warned by Chief Justice after signing petition against extradition bill
South China Morning Post, 8-Jun-2019
We note that the HK Law Reform Commission includes the Chief Justice and another permanent judge of the Court of Final Appeal - so judges do indeed express views on proposed changes to laws - but the fast-track Extradition Bill never went through the LRC. The Chief Executive should now withdraw the bill and refer the issue to the LRC.
South China Morning Post, 8-Jun-2019
We note that the HK Law Reform Commission includes the Chief Justice and another permanent judge of the Court of Final Appeal - so judges do indeed express views on proposed changes to laws - but the fast-track Extradition Bill never went through the LRC. The Chief Executive should now withdraw the bill and refer the issue to the LRC.
Leung Chun Kwong v Civil Service & Inland Revenue
HK Court of Final Appeal, 6-Jun-2019
In a victory for common sense, Mr Leung, a gay man legally married overseas, wins. The CFA unanimously overturns the Court of Appeal, which found that the "prevailing views of the community on marriage" was relevant. In a nutshell, the whole point of prohibiting discrimination against minorities is to prevent the majority view (if there is one) from trampling over their rights. The CFA also held that there was no rational connection between denying Leung his employment benefits and joint taxation and protecting the institution of heterosexual marriage (if that is a legitimate aim).
HK Court of Final Appeal, 6-Jun-2019
In a victory for common sense, Mr Leung, a gay man legally married overseas, wins. The CFA unanimously overturns the Court of Appeal, which found that the "prevailing views of the community on marriage" was relevant. In a nutshell, the whole point of prohibiting discrimination against minorities is to prevent the majority view (if there is one) from trampling over their rights. The CFA also held that there was no rational connection between denying Leung his employment benefits and joint taxation and protecting the institution of heterosexual marriage (if that is a legitimate aim).
The Trump Dump: war-gaming the next move against China
Webb-site.com, 2-Jun-2019
The US Administration has so far focused entirely on the trade account, but when the potential for tariffs is exhausted, if not sooner, Trump may start to wonder why US funds have hundreds of billions of dollars invested in stocks and bonds of Chinese state-backed companies, and use OFAC powers to order them to divest.
Webb-site.com, 2-Jun-2019
The US Administration has so far focused entirely on the trade account, but when the potential for tariffs is exhausted, if not sooner, Trump may start to wonder why US funds have hundreds of billions of dollars invested in stocks and bonds of Chinese state-backed companies, and use OFAC powers to order them to divest.
SFC fines China Merchants Securities HK$27m for sponsor failures
SFC, 27-May-2019
As we predicted in March when UBS was fined but one of its clients was not named, this relates to the IPO of China Metal Recycling, listed in 2009 and ordered in 2015 to be wound up. The IPO was jointly sponsored by UBS and China Merchants Securities.
SFC, 27-May-2019
As we predicted in March when UBS was fined but one of its clients was not named, this relates to the IPO of China Metal Recycling, listed in 2009 and ordered in 2015 to be wound up. The IPO was jointly sponsored by UBS and China Merchants Securities.
Former JPMorgan banker charged with bribery relating to Kerry Logistics IPO appears in court
South China Morning Post, 20-May-2019
South China Morning Post, 20-May-2019
Red Star Macalline (1528): HKD dividend was "inaccurate"
Company announcement, 20-May-2019
That's what happens when you multiply rather than divide by the CNY/HKD exchange rate. The correction follows a complaint to HKEX by Webb-site.
Company announcement, 20-May-2019
That's what happens when you multiply rather than divide by the CNY/HKD exchange rate. The correction follows a complaint to HKEX by Webb-site.
Ex-CSRC head under investigation
| CCDI notice
RTHK, 20-May-2019
He was formerly head of Agricultural Bank of China Ltd (1288).
RTHK, 20-May-2019
He was formerly head of Agricultural Bank of China Ltd (1288).
Censure of Weiqiao Textile (2698) and certain Executive Directors
SEHK, 17-May-2019
For failing to disclose loans by the company to its unlisted parent and seek independent shareholders' approval. When approval was eventually sought, it was rejected and the loans were repaid.
SEHK, 17-May-2019
For failing to disclose loans by the company to its unlisted parent and seek independent shareholders' approval. When approval was eventually sought, it was rejected and the loans were repaid.
Catherine Leung Kar Cheung, ex-J.P. Morgan MD, charged with bribing chairman of logistics company for IPO
| Sponsorships of J.P. Morgan
ICAC, 16-May-2019
The first HK charge in the famous "Sons & Daughters" program of J,P. Morgan. We don't know which company, chairman or son was involved or whether JPM got the job. A list of their IPOs is at the link above. Ms Leung is now MD of hedge fund manager Serica Partners Asia Ltd, of which her husband Ivan Lee Chin Leung is founder and CIO.
ICAC, 16-May-2019
The first HK charge in the famous "Sons & Daughters" program of J,P. Morgan. We don't know which company, chairman or son was involved or whether JPM got the job. A list of their IPOs is at the link above. Ms Leung is now MD of hedge fund manager Serica Partners Asia Ltd, of which her husband Ivan Lee Chin Leung is founder and CIO.
SFC bans Wang Can, ex-China Galaxy, for 30 months, fines him HK$7,800
SFC, 16-May-2019
He was privy to information on a transaction by Linmark (now Daohe, 0915) and bought 40,000 shares, on which he made a profit of $7,800 ($0.195 per share) when he sold them on 5-Dec-2014, 2 days after the transaction was announced. The stock price ranged from $0.68-0.76 that day. It is unclear why he was not charged with Insider Dealing.
SFC, 16-May-2019
He was privy to information on a transaction by Linmark (now Daohe, 0915) and bought 40,000 shares, on which he made a profit of $7,800 ($0.195 per share) when he sold them on 5-Dec-2014, 2 days after the transaction was announced. The stock price ranged from $0.68-0.76 that day. It is unclear why he was not charged with Insider Dealing.
Concentration warning in Kenford (0464)
SFC, 16-May-2019
The top 20 holders have 95.46% of the stock.
SFC, 16-May-2019
The top 20 holders have 95.46% of the stock.
Gransing Securities chair Rowena Oei Hong Eng suspended for 8 months
SFC, 16-May-2019
Gransing is one of the brokerages in what we call the "Enigma Network", having acted as placing agent for many of its listed companies. The firm was co-founded by Ms Oei and her husband Gerald Que Bon Tan. It is 17.52% owned by China New Economy Fund (0080), a network company. The CNEF accounts state that Gransing Financial Group Ltd (including the brokerage) had an unaudited loss of HK$20.7m in 2018. Ms Oei admitted that she dishonestly crossed orders with an unnamed friend at another firm in 2 stocks (not in the network).
SFC, 16-May-2019
Gransing is one of the brokerages in what we call the "Enigma Network", having acted as placing agent for many of its listed companies. The firm was co-founded by Ms Oei and her husband Gerald Que Bon Tan. It is 17.52% owned by China New Economy Fund (0080), a network company. The CNEF accounts state that Gransing Financial Group Ltd (including the brokerage) had an unaudited loss of HK$20.7m in 2018. Ms Oei admitted that she dishonestly crossed orders with an unnamed friend at another firm in 2 stocks (not in the network).
Roy Cho Kwai Chee charged with conspiracy to defraud Convoy (1019)
| SFC announcement
ICAC, 16-May-2019
2 years and 1 day after we published the "Enigma Network" report, the first charge is brought, relating to a relatively small and previously-unannounced acquisition by Convoy. 55% of the target was owned by Mr Cho. The ICAC alleges that he owned "50% shareholdings" in Convoy. He was not a disclosed shareholder, so to prove this, they will need to show that he was pulling the strings of numerous listed companies in the network which held the stock. Two co-conspirators are unnamed. We wait to see the rest of the iceberg.
ICAC, 16-May-2019
2 years and 1 day after we published the "Enigma Network" report, the first charge is brought, relating to a relatively small and previously-unannounced acquisition by Convoy. 55% of the target was owned by Mr Cho. The ICAC alleges that he owned "50% shareholdings" in Convoy. He was not a disclosed shareholder, so to prove this, they will need to show that he was pulling the strings of numerous listed companies in the network which held the stock. Two co-conspirators are unnamed. We wait to see the rest of the iceberg.
Andrew Fan, Universal INED
Webb-site.com, 15-May-2019
A quick look at tomorrow's new listing sees an INED taking his 10th board seat. In our view, he should have found time to check his prospectus biography more carefully.
Webb-site.com, 15-May-2019
A quick look at tomorrow's new listing sees an INED taking his 10th board seat. In our view, he should have found time to check his prospectus biography more carefully.
The spectacular implosion of Dr. Cho's 'nefarious network'
| The Enigma Network
Bloomberg, 15-May-2019
Today is the 2nd anniversary of Webb-site's publication of the Enigma Network. So far, nobody has been charged with any offence, and no SFC action has been taken to bring in the liquidators to wind up any of the listed companies involved.
Bloomberg, 15-May-2019
Today is the 2nd anniversary of Webb-site's publication of the Enigma Network. So far, nobody has been charged with any offence, and no SFC action has been taken to bring in the liquidators to wind up any of the listed companies involved.
Censure of GT (0263) and certain directors
| The Joint Global implosion
SEHK, 14-May-2019
This relates to our investigative report "The Joint Global implosion" of 30-Sep-2016. The announcement states that the Listing Department began investigating in mid-Oct-2016. In our view, the SFC and possibly the Commercial Crime Bureau should be investigating the circumstances of the collapse of Joint Global, which wiped over HK$2bn off the balance sheets of at least 11 listed companies in what we call the "Chung Nam Network".
SEHK, 14-May-2019
This relates to our investigative report "The Joint Global implosion" of 30-Sep-2016. The announcement states that the Listing Department began investigating in mid-Oct-2016. In our view, the SFC and possibly the Commercial Crime Bureau should be investigating the circumstances of the collapse of Joint Global, which wiped over HK$2bn off the balance sheets of at least 11 listed companies in what we call the "Chung Nam Network".
HKICPA bans Richard Yin Yingneng for 2 years
HKICPA, 2-May-2019
Amazingly, it was only 18 months after the SFC's announcement of the Court's findings that the HKICPA "became aware" of the wrong-doing by its members, including Kenny Lee Yiu Sun. There appears to be some sort of communications failure between the 2 regulators.
HKICPA, 2-May-2019
Amazingly, it was only 18 months after the SFC's announcement of the Court's findings that the HKICPA "became aware" of the wrong-doing by its members, including Kenny Lee Yiu Sun. There appears to be some sort of communications failure between the 2 regulators.
Stop the Scripless U-turn
Webb-site.com, 30-Apr-2019
Investors were in the dark for 4 years about plans to tear up a model that was first recommended by the Hay Davison Report in 1988, has worked in Australia since 1999, and was legislated in HK in 2015 but never actioned. Our extensive discussions with SFC and HKEX reveal no legitimate issues. We urge legislators to reject this U-turn and the SFC to proceed with the legislated model. The stench of vested interests is overpowering.
Webb-site.com, 30-Apr-2019
Investors were in the dark for 4 years about plans to tear up a model that was first recommended by the Hay Davison Report in 1988, has worked in Australia since 1999, and was legislated in HK in 2015 but never actioned. Our extensive discussions with SFC and HKEX reveal no legitimate issues. We urge legislators to reject this U-turn and the SFC to proceed with the legislated model. The stench of vested interests is overpowering.
Our stories
The Trump Dump: war-gaming the next move against China
The US Administration has so far focused entirely on the trade account, but when the potential for tariffs is exhausted, if not sooner, Trump may start to wonder why US funds have hundreds of billions of dollars invested in stocks and bonds of Chinese state-backed companies, and use OFAC powers to order them to divest. (2-Jun-2019)
The US Administration has so far focused entirely on the trade account, but when the potential for tariffs is exhausted, if not sooner, Trump may start to wonder why US funds have hundreds of billions of dollars invested in stocks and bonds of Chinese state-backed companies, and use OFAC powers to order them to divest. (2-Jun-2019)
Andrew Fan, Universal INED
A quick look at tomorrow's new listing sees an INED taking his 10th board seat. In our view, he should have found time to check his prospectus biography more carefully. (15-May-2019)
A quick look at tomorrow's new listing sees an INED taking his 10th board seat. In our view, he should have found time to check his prospectus biography more carefully. (15-May-2019)
Stop the Scripless U-turn
Investors were in the dark for 4 years about plans to tear up a model that was first recommended by the Hay Davison Report in 1988, has worked in Australia since 1999, and was legislated in HK in 2015 but never actioned. Our extensive discussions with SFC and HKEX reveal no legitimate issues. We urge legislators to reject this U-turn and the SFC to proceed with the legislated model. The stench of vested interests is overpowering. (30-Apr-2019)
Investors were in the dark for 4 years about plans to tear up a model that was first recommended by the Hay Davison Report in 1988, has worked in Australia since 1999, and was legislated in HK in 2015 but never actioned. Our extensive discussions with SFC and HKEX reveal no legitimate issues. We urge legislators to reject this U-turn and the SFC to proceed with the legislated model. The stench of vested interests is overpowering. (30-Apr-2019)
Enigma fallout: the social media fund
We piece together disclosures by 4 listed companies in the Enigma Network to reveal a pseudo-fund which held a single 55% stake in a social media company, posing new questions for the regulators. (28-Apr-2019)
We piece together disclosures by 4 listed companies in the Enigma Network to reveal a pseudo-fund which held a single 55% stake in a social media company, posing new questions for the regulators. (28-Apr-2019)
Putting the dot back in HK
A deep dive into HK's "not-for-profit" internet domain registry reveals appalling governance, over-charging, continuing conflicts of interests and a severe case of corporate obesity. In late 2015, having hoarded enough cash to run the registry for 9 years, the Government-controlled board reversed a fee cut, losing a quarter of registered domains over the next 3 years, while seeking ways to squander the surpluses on mission-creep rather than return the cash to users. There is a better way. (25-Apr-2019)
A deep dive into HK's "not-for-profit" internet domain registry reveals appalling governance, over-charging, continuing conflicts of interests and a severe case of corporate obesity. In late 2015, having hoarded enough cash to run the registry for 9 years, the Government-controlled board reversed a fee cut, losing a quarter of registered domains over the next 3 years, while seeking ways to squander the surpluses on mission-creep rather than return the cash to users. There is a better way. (25-Apr-2019)
HKMA, SFC announce "serious concerns" about transactions by mainland bank, HK subsidiary
And we think we know who they mean. The facts all point to entities featured in our network diagram last October. (24-Apr-2019)
And we think we know who they mean. The facts all point to entities featured in our network diagram last October. (24-Apr-2019)
SFC action is too little, too late for minority shareholders of Luxey (8041)
The SFC seeks disqualification of 2 ex-directors, but fails to seek any recovery of Luxey's HK$350m, 7-fold overpayment in an acquisition from an alleged nominee of then Chairman Joseph Lau. We first documented this case and numerous other suspicious transactions involving Luxey and other listed companies in a series of articles in 2012. This is the only one to see any action, and it falls far short of what is needed to provide a deterrent. (14-Apr-2019)
The SFC seeks disqualification of 2 ex-directors, but fails to seek any recovery of Luxey's HK$350m, 7-fold overpayment in an acquisition from an alleged nominee of then Chairman Joseph Lau. We first documented this case and numerous other suspicious transactions involving Luxey and other listed companies in a series of articles in 2012. This is the only one to see any action, and it falls far short of what is needed to provide a deterrent. (14-Apr-2019)
The national investment fund that isn't
A Friday night announcement illustrates all that is wrong with HK's Listing Rules for closed-end funds. (23-Mar-2019)
A Friday night announcement illustrates all that is wrong with HK's Listing Rules for closed-end funds. (23-Mar-2019)
Hopewell and the lemon discount
What does the ability to take a company private for 57 cents on the dollar say about the future of HK's public market? Failure to reform HK's laws and regulations to improve the corporate governance framwork will see the market shrink over time as good companies stay away and controllers take existing companies private. (22-Mar-2019)
What does the ability to take a company private for 57 cents on the dollar say about the future of HK's public market? Failure to reform HK's laws and regulations to improve the corporate governance framwork will see the market shrink over time as good companies stay away and controllers take existing companies private. (22-Mar-2019)
Inside the Kingdee bubble
It appears to be a Shenzhen success story, conquering the World with the "Chinese management model", but we burn through the techno-fog of the disclosures and dig deep inside the accounts. You won't like what you see. (18-Mar-2019)
It appears to be a Shenzhen success story, conquering the World with the "Chinese management model", but we burn through the techno-fog of the disclosures and dig deep inside the accounts. You won't like what you see. (18-Mar-2019)
Revealed: SFC probes Chairman, CEO of Hua Han Health (0587), freezes their accounts
The SFC has frozen accounts at 3 brokerages up to HK$3.81bn, the amount raised by HHH in 2015 in an open offer ($3.19bn) and a CB ($0.62bn) issued to Huarong (2799) and CCB (0939). The SFC suspects false or misleading statements and misappropriation of part of the proceeds. (16-Feb-2019)
The SFC has frozen accounts at 3 brokerages up to HK$3.81bn, the amount raised by HHH in 2015 in an open offer ($3.19bn) and a CB ($0.62bn) issued to Huarong (2799) and CCB (0939). The SFC suspects false or misleading statements and misappropriation of part of the proceeds. (16-Feb-2019)
Chairman pledges controlling stake in IBO Tech (2708) to China Fortune (0290)
Webb-site can reveal that Mr Lai Tse Ming has pledged his 55.8% stake for a HK$155m loan from a money-lender, something that neither he nor IBO Tech has disclosed. (8-Feb-2019)
Webb-site can reveal that Mr Lai Tse Ming has pledged his 55.8% stake for a HK$155m loan from a money-lender, something that neither he nor IBO Tech has disclosed. (8-Feb-2019)
A simpler, fairer tax system
There are calls for a rental deduction for HK salaries tax, to compensate for the mortgage interest deduction. Both miss the point. Governments should not use tax breaks to distort consumer choice. Give people unconditional higher personal allowances instead, and introduce a flat rate of tax above that. Also, abolish the tiered rate of profits tax and the R&D deduction, 2 gimmicks introduced by Carrie Lam. (30-Jan-2019)
There are calls for a rental deduction for HK salaries tax, to compensate for the mortgage interest deduction. Both miss the point. Governments should not use tax breaks to distort consumer choice. Give people unconditional higher personal allowances instead, and introduce a flat rate of tax above that. Also, abolish the tiered rate of profits tax and the R&D deduction, 2 gimmicks introduced by Carrie Lam. (30-Jan-2019)
Why stock-plunges happen so often in HK
We explain the 20-year history to a statutory loophole which keeps investors in the dark on share pledges. (24-Jan-2019)
We explain the 20-year history to a statutory loophole which keeps investors in the dark on share pledges. (24-Jan-2019)
Jiayuan (2768) Chairman should expect the SFC's call
After denying any knowledge of reasons for last Thursday's crash, Jiayuan now says that 3.73% of the Chairman's stake was dumped in a forced sale due to enforcement of share charges and/or margin financings. (23-Jan-2019)
After denying any knowledge of reasons for last Thursday's crash, Jiayuan now says that 3.73% of the Chairman's stake was dumped in a forced sale due to enforcement of share charges and/or margin financings. (23-Jan-2019)
Other news
Judge warned by Chief Justice after signing petition against extradition bill
South China Morning Post, 8-Jun-2019
We note that the HK Law Reform Commission includes the Chief Justice and another permanent judge of the Court of Final Appeal - so judges do indeed express views on proposed changes to laws - but the fast-track Extradition Bill never went through the LRC. The Chief Executive should now withdraw the bill and refer the issue to the LRC.
South China Morning Post, 8-Jun-2019
We note that the HK Law Reform Commission includes the Chief Justice and another permanent judge of the Court of Final Appeal - so judges do indeed express views on proposed changes to laws - but the fast-track Extradition Bill never went through the LRC. The Chief Executive should now withdraw the bill and refer the issue to the LRC.
Leung Chun Kwong v Civil Service & Inland Revenue
HK Court of Final Appeal, 6-Jun-2019
In a victory for common sense, Mr Leung, a gay man legally married overseas, wins. The CFA unanimously overturns the Court of Appeal, which found that the "prevailing views of the community on marriage" was relevant. In a nutshell, the whole point of prohibiting discrimination against minorities is to prevent the majority view (if there is one) from trampling over their rights. The CFA also held that there was no rational connection between denying Leung his employment benefits and joint taxation and protecting the institution of heterosexual marriage (if that is a legitimate aim).
HK Court of Final Appeal, 6-Jun-2019
In a victory for common sense, Mr Leung, a gay man legally married overseas, wins. The CFA unanimously overturns the Court of Appeal, which found that the "prevailing views of the community on marriage" was relevant. In a nutshell, the whole point of prohibiting discrimination against minorities is to prevent the majority view (if there is one) from trampling over their rights. The CFA also held that there was no rational connection between denying Leung his employment benefits and joint taxation and protecting the institution of heterosexual marriage (if that is a legitimate aim).
SFC fines China Merchants Securities HK$27m for sponsor failures
SFC, 27-May-2019
As we predicted in March when UBS was fined but one of its clients was not named, this relates to the IPO of China Metal Recycling, listed in 2009 and ordered in 2015 to be wound up. The IPO was jointly sponsored by UBS and China Merchants Securities.
SFC, 27-May-2019
As we predicted in March when UBS was fined but one of its clients was not named, this relates to the IPO of China Metal Recycling, listed in 2009 and ordered in 2015 to be wound up. The IPO was jointly sponsored by UBS and China Merchants Securities.
Former JPMorgan banker charged with bribery relating to Kerry Logistics IPO appears in court
South China Morning Post, 20-May-2019
South China Morning Post, 20-May-2019
Red Star Macalline (1528): HKD dividend was "inaccurate"
Company announcement, 20-May-2019
That's what happens when you multiply rather than divide by the CNY/HKD exchange rate. The correction follows a complaint to HKEX by Webb-site.
Company announcement, 20-May-2019
That's what happens when you multiply rather than divide by the CNY/HKD exchange rate. The correction follows a complaint to HKEX by Webb-site.
Ex-CSRC head under investigation
| CCDI notice
RTHK, 20-May-2019
He was formerly head of Agricultural Bank of China Ltd (1288).
RTHK, 20-May-2019
He was formerly head of Agricultural Bank of China Ltd (1288).
Censure of Weiqiao Textile (2698) and certain Executive Directors
SEHK, 17-May-2019
For failing to disclose loans by the company to its unlisted parent and seek independent shareholders' approval. When approval was eventually sought, it was rejected and the loans were repaid.
SEHK, 17-May-2019
For failing to disclose loans by the company to its unlisted parent and seek independent shareholders' approval. When approval was eventually sought, it was rejected and the loans were repaid.
Catherine Leung Kar Cheung, ex-J.P. Morgan MD, charged with bribing chairman of logistics company for IPO
| Sponsorships of J.P. Morgan
ICAC, 16-May-2019
The first HK charge in the famous "Sons & Daughters" program of J,P. Morgan. We don't know which company, chairman or son was involved or whether JPM got the job. A list of their IPOs is at the link above. Ms Leung is now MD of hedge fund manager Serica Partners Asia Ltd, of which her husband Ivan Lee Chin Leung is founder and CIO.
ICAC, 16-May-2019
The first HK charge in the famous "Sons & Daughters" program of J,P. Morgan. We don't know which company, chairman or son was involved or whether JPM got the job. A list of their IPOs is at the link above. Ms Leung is now MD of hedge fund manager Serica Partners Asia Ltd, of which her husband Ivan Lee Chin Leung is founder and CIO.
SFC bans Wang Can, ex-China Galaxy, for 30 months, fines him HK$7,800
SFC, 16-May-2019
He was privy to information on a transaction by Linmark (now Daohe, 0915) and bought 40,000 shares, on which he made a profit of $7,800 ($0.195 per share) when he sold them on 5-Dec-2014, 2 days after the transaction was announced. The stock price ranged from $0.68-0.76 that day. It is unclear why he was not charged with Insider Dealing.
SFC, 16-May-2019
He was privy to information on a transaction by Linmark (now Daohe, 0915) and bought 40,000 shares, on which he made a profit of $7,800 ($0.195 per share) when he sold them on 5-Dec-2014, 2 days after the transaction was announced. The stock price ranged from $0.68-0.76 that day. It is unclear why he was not charged with Insider Dealing.
Concentration warning in Kenford (0464)
SFC, 16-May-2019
The top 20 holders have 95.46% of the stock.
SFC, 16-May-2019
The top 20 holders have 95.46% of the stock.
Gransing Securities chair Rowena Oei Hong Eng suspended for 8 months
SFC, 16-May-2019
Gransing is one of the brokerages in what we call the "Enigma Network", having acted as placing agent for many of its listed companies. The firm was co-founded by Ms Oei and her husband Gerald Que Bon Tan. It is 17.52% owned by China New Economy Fund (0080), a network company. The CNEF accounts state that Gransing Financial Group Ltd (including the brokerage) had an unaudited loss of HK$20.7m in 2018. Ms Oei admitted that she dishonestly crossed orders with an unnamed friend at another firm in 2 stocks (not in the network).
SFC, 16-May-2019
Gransing is one of the brokerages in what we call the "Enigma Network", having acted as placing agent for many of its listed companies. The firm was co-founded by Ms Oei and her husband Gerald Que Bon Tan. It is 17.52% owned by China New Economy Fund (0080), a network company. The CNEF accounts state that Gransing Financial Group Ltd (including the brokerage) had an unaudited loss of HK$20.7m in 2018. Ms Oei admitted that she dishonestly crossed orders with an unnamed friend at another firm in 2 stocks (not in the network).
Roy Cho Kwai Chee charged with conspiracy to defraud Convoy (1019)
| SFC announcement
ICAC, 16-May-2019
2 years and 1 day after we published the "Enigma Network" report, the first charge is brought, relating to a relatively small and previously-unannounced acquisition by Convoy. 55% of the target was owned by Mr Cho. The ICAC alleges that he owned "50% shareholdings" in Convoy. He was not a disclosed shareholder, so to prove this, they will need to show that he was pulling the strings of numerous listed companies in the network which held the stock. Two co-conspirators are unnamed. We wait to see the rest of the iceberg.
ICAC, 16-May-2019
2 years and 1 day after we published the "Enigma Network" report, the first charge is brought, relating to a relatively small and previously-unannounced acquisition by Convoy. 55% of the target was owned by Mr Cho. The ICAC alleges that he owned "50% shareholdings" in Convoy. He was not a disclosed shareholder, so to prove this, they will need to show that he was pulling the strings of numerous listed companies in the network which held the stock. Two co-conspirators are unnamed. We wait to see the rest of the iceberg.
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