News

SFC obtains DQs against ex-senior execs of Shandong Molong (0568) for faking accountsJudgment
SFC, 2-Mar-2021
Justice Linda Chan criticises the SFC for (1) producing 3 alternative sets of admitted facts on the gravity of the wrongdoing before deciding on the most serious one (knowingly causing the earnings inflation); (2) failing to advance any mitigating factors; and (3) producing 10 bundles of documents that were not needed.
SFC petitions to wind up Adamas Asset Management (HK) Ltd
SFC, 26-Feb-2021
The sole director, Paul Lincoln Heffner was reportedly found dead in his Tesla on 1-Jan-2021, with a bucket of burnt charcoal in the back seat. We note that the firm and its co-founder Barry Lau Wang Chi featured in articles we wrote about the Enigma Network. Mr Lau ceased to be a Responsible Officer of the firm on 30-Nov-2020.
The Budget and HK's Road to Serfdom
Webb-site.com, 26-Feb-2021
The so-called "Consumption Voucher" will probably become another cash handout, a total of HK$108bn over 2 years - but that's not the point. HK's budget has long since deviated from the Basic Law requirement to keep the budget in line with Gross Domestic Product over time, having expanded by over a quarter since the 1997 Handover. HK is becoming a tax-and-spend interventionist economy, departing from the free-market principles at the root of its success.
HKSAR v Jimmy Lai Chee Ying
HK Court of First Instance, 23-Feb-2021
Bail refused.
SFC freezes accounts in suspected social media pump & dumpCCASS movements
SFC, 18-Feb-2021
They don't name the stock, but Webb-site can tell you it's probably Macau E&M (1408) which listed at $1.00 on 11-Sep-2020 and closed at $4.36 on 25-Nov-2020 before crashing 81.9% the next day. See the movements in our CCASS Analysis System.
SFC freezes accounts at 2 brokers in suspected social media pump & dumpRestriction Notices
SFC, 9-Feb-2021
The SFC suspects 2 unnamed stocks were manipulated between Mar-Oct-2020. The Restriction Notices target HK$249.5m. This could relate to Skymission (1429) which collapsed 92.1% on 30-Oct, and the other may be Beng Soon Machinery (1987) which in our view is still a bubble.
Concentration warning in China Boton (3318)
SFC, 9-Feb-2021
The top 20 holders have 92.96%.
SFC obtains DQ against Duncan Chiu Tat Kun & Michael Lui Hung Kwong of Far East Holdings International Ltd (0036)Judgment
SFC, 9-Feb-2021
It's quite amazing that Duncan Chiu has been allowed to carry on as a government-appointed director of the Cyberport and Hospital Authority. Also notable that Mr Fong Hup of Deloitte gave a clean audit on the 2007 accounts after learning of the situation. Duncan Chiu now accepts that the accounts were misleading by omission and this amounted to misconduct. The INEDs, as Audit Committee, also signed off. The 2 respondents, along with late Chairman Deacon Chiu's assistant Wendy Yung Kim Bing, were acquitted in 2012 of criminal fraud charges relating to the same loan.
HKSAR v Jimmy Lai Chee Ying
HK Court of Final Appeal, 9-Feb-2021
Censure of Brightoil Petroleum (ex-0933) and 4 directors
SEHK, 3-Feb-2021
They failed to announce SEHK Listing Committee's decision to delist the company - something that SEHK could have announced anyway. Why doesn't SEHK announce its own decisions and appeals against them, to keep the market informed?
Lai Xiaomin, ex-Chairman of China Huarong Asset Management (2799) executedHuarong-CMB network
Reuters, 29-Jan-2021
The company featured in our "Huarong-CMB network - 26 stocks not to own" article of 19-Oct-2018.
How the GameStop game will stop
Webb-site.com, 28-Jan-2021
…and who will benefit when it does.
SFC freezes accounts at 5 brokers, suspects market manipulationRestriction Notices
SFC, 26-Jan-2021
The stock which was allegedly manipulated between Sep-2020 and Oct-2020 is not named. The total amount targeted in the Restriction Notices is HK$153.78m. We note that one of the brokers, Realord Asia Pacific Securities Ltd, is owned by Realord (1196), which we consider is in a bubble. 3 of the brokers (Realord, AMC Wanhai and Eddid) were in the top 7 CCASS Participants in that stock at 30-Sep-2020.
David Perry QC withdraws from prosecuting pan-dems
HK Government, 20-Jan-2021
4 days after we queried how he proposed to get to HK given the ban on travel from the UK, Mr Perry withdraws, partly because of "the exemption of quarantine". By the way, this case involves alleged offences under the Public Order Ordinance, not the National Security Law. UK Foreign Secretary Dominic Raab was wrong on that point, but it's an easy mistake to make given that over 50 pan-dems were arrested under suspicion of NSL offences 2 weeks ago.
Meter Madness
Webb-site.com, 19-Jan-2021
How HK's policies of pseudo-anonymity and deep under-pricing of metered parking have resulted in a half-baked not-very-smart upgrade to the system, launched yesterday.
Specially Designated Nationals list updateState Department Press Statement
US Treasury, 15-Jan-2021
The detailed list of persons sanctioned by the United States yesterday.
The Main Board profit requirement - for whom?
Webb-site.com, 14-Jan-2021
Webb-site responds to the HKEX proposal which further raises the barriers to entry for smaller companies on its monopoly stockmarket and reduces investor choice. Help us out and add your voice!
Back on TraHK (2800)
Company announcement, 13-Jan-2021
Without giving reasons, fund manager State Street (ultimately a US person) now says that TraHK will resume investments in US-sanctioned stocks in the HSI, 2 days after it stopped. 2% of the units have been redeemed since then. This comes after Webb-site called for the Supervisory Committee to remove State Street and replace it with a non-US person. Will they change their mind a second time, like the New York Stock Exchange did when it delisted the stocks? Wait and see.
Re David Perry QC
HK Court of First Instance, 12-Jan-2021
Mr Perry is approved to visit HK and prosecute leading pan-democrats for unauthorised assembly. Trial begins 16-Feb, but all arrivals from UK are currently banned - will the Govt exempt him, or is he already here? Like HK residents stranded in the UK, he could go somewhere else for 21 days and then do 21 days quarantine in HK, but that's 42 days of taxpayers' fees before he starts, not before 24-Feb.
TraHK (2800) cannot buy any more US-sanctioned HSI stocks
Company announcement, 11-Jan-2021
That's because it has US Persons as its Trustee and Manager. There is a Supervisory Committee which has the power to change both, and it should now do so, picking a non-US manager and trustee. Until then, the HK$105bn fund will struggle to track the Hang Seng Index.
Criticism of Xinming China (2699) and its Chairman Chen Chengshou
SEHK, 8-Jan-2021
Without telling his board of directors, or announcing it, or getting shareholders' approval, he pledged RMB535.4m of the group's deposits at Bank of Wenzhou (of which he is a director) to secure a loan by that bank to a third party, Zhejiang Muji Trading Co Ltd, just before the 2018 year-end. The pledge was released a few days later after the guarantee fee was not paid.
Jimmy Lai returned to custody pending prosecution's appeal against bail
HK Court of Final Appeal, 31-Dec-2020
The top court cites prosecution's concern that Mr Lai may cause "irreparable harm to national security" while on bail, rendering the appeal nugatory, and chooses the "status quo ante" as the magistrate's decision to remand him in custody rather than the status quo before that, of being a free man.

Our stories

The Budget and HK's Road to Serfdom
The so-called "Consumption Voucher" will probably become another cash handout, a total of HK$108bn over 2 years - but that's not the point. HK's budget has long since deviated from the Basic Law requirement to keep the budget in line with Gross Domestic Product over time, having expanded by over a quarter since the 1997 Handover. HK is becoming a tax-and-spend interventionist economy, departing from the free-market principles at the root of its success. (26-Feb-2021)
How the GameStop game will stop
…and who will benefit when it does. (28-Jan-2021)
Meter Madness
How HK's policies of pseudo-anonymity and deep under-pricing of metered parking have resulted in a half-baked not-very-smart upgrade to the system, launched yesterday. (19-Jan-2021)
The Main Board profit requirement - for whom?
Webb-site responds to the HKEX proposal which further raises the barriers to entry for smaller companies on its monopoly stockmarket and reduces investor choice. Help us out and add your voice! (14-Jan-2021)
ESS Revealed
As part of our push for open data, Webb-site tonight publishes the first detailed analysis of approved claims under the so-called "Employment Support Scheme", including league tables of the top 5,000 recipients and a search function for all recipients. (13-Dec-2020)
COVID-19: were the lockdowns worth the socio-economic cost?Video replay
These are the slides from a "Webbinar" with David Webb hosted by Exeter College, Oxford University, this evening. As vaccines draw near, the debate on the global policy responses to the pandemic should begin. (4-Dec-2020)
Govt adopts part of our CICS proposal - now get it right
3 days after our article last Monday, the HK Govt began talking about a compensation scheme for virus-positive tests, to incentivise self-employed symptomatic people facing loss of income to come forward. But early reports suggest it will be too little and won't apply to close contacts, deterring people who are symptomatic if the close contact is a family member who will be deprived of income while in the quarantine camp. Get it right! (22-Nov-2020)
The geo-politics of HK's clunky contact-tracing app
We look at the deceptively-named "LeaveHomeSafe" app, and why it failed to adopt the automated technology worked out by Google and Apple for exposure notifications and instead resorted to a home-brewed QR-scanning system that few will use. The answer may lie in politics. (19-Nov-2020)
Discover COVID cases with behavioural economics, not force of law
The HK Government has again displayed its authoritarian streak by introducing a mandatory testing law. Instead, citizens and their close contacts should be compensated for as long as they are compulsorily isolated after one of them tests positive. For the self-employed, this would remove a deterrent to seeing a doctor when sick, and thereby also reduce the spread of other diseases. (16-Nov-2020)
Independent shareholders veto Tongda Hong Tai (2363) Whitewash Waiver
The largest shareholder wanted to underwrite a 1:1 open offer of new shares, potentially obtaining majority control without making a General Offer. Howel Thomas and his Wykeham Capital Asia Value Fund made sure that didn't happen, using the 75% approval requirement introduced in 2018. (16-Nov-2020)
KPMG supports one Country, three singing accountants
But are they tenors? Harmonising in the annual report of Shenwan Hongyuan (6806). Also, HK is "overseas" from PRC - so not part of it then? (12-Nov-2020)
image
A New Ray of light on an Enigma Network case
A decision quietly posted on the SFAT website reveals that Zhou Ling, ex-Chairman of New Ray Medicine (6108) is suspected by the SFC to have committed "misconduct and obtained secret profits from certain transactions" by NRM. Earlier gazetted Restriction Notices on a client at 2 brokers now make sense - the SFC has reduced disclosure in that area so much as to make the publication meaningless. (26-Oct-2020)
A special message from our Founder
Unfortunately, there are going to be some changes around here. (8-Jun-2020)
Government misled LegCo over COVID-19 broker handout
Applying to the Finance Committee, the Government made claims which it knew or should have known were false and misleading. It was either lying or reckless. Webb-site tells you the truth. (1-May-2020)
Non-dispersable gatherings
We hereby "sternly clarify" that the Police and Secretary for Justice are wrong to claim that groups of 4 standing more than 1.5 metres apart constitute a single gathering if they have a common purpose. The Group Gathering Regulation allows for multiple, non-dispersable gatherings and contain no reference to the purpose of participants. We also show how to optimise use of available space. (28-Apr-2020)
image

Other news

SFC obtains DQs against ex-senior execs of Shandong Molong (0568) for faking accountsJudgment
SFC, 2-Mar-2021
Justice Linda Chan criticises the SFC for (1) producing 3 alternative sets of admitted facts on the gravity of the wrongdoing before deciding on the most serious one (knowingly causing the earnings inflation); (2) failing to advance any mitigating factors; and (3) producing 10 bundles of documents that were not needed.
SFC petitions to wind up Adamas Asset Management (HK) Ltd
SFC, 26-Feb-2021
The sole director, Paul Lincoln Heffner was reportedly found dead in his Tesla on 1-Jan-2021, with a bucket of burnt charcoal in the back seat. We note that the firm and its co-founder Barry Lau Wang Chi featured in articles we wrote about the Enigma Network. Mr Lau ceased to be a Responsible Officer of the firm on 30-Nov-2020.
HKSAR v Jimmy Lai Chee Ying
HK Court of First Instance, 23-Feb-2021
Bail refused.
SFC freezes accounts in suspected social media pump & dumpCCASS movements
SFC, 18-Feb-2021
They don't name the stock, but Webb-site can tell you it's probably Macau E&M (1408) which listed at $1.00 on 11-Sep-2020 and closed at $4.36 on 25-Nov-2020 before crashing 81.9% the next day. See the movements in our CCASS Analysis System.
SFC freezes accounts at 2 brokers in suspected social media pump & dumpRestriction Notices
SFC, 9-Feb-2021
The SFC suspects 2 unnamed stocks were manipulated between Mar-Oct-2020. The Restriction Notices target HK$249.5m. This could relate to Skymission (1429) which collapsed 92.1% on 30-Oct, and the other may be Beng Soon Machinery (1987) which in our view is still a bubble.
Concentration warning in China Boton (3318)
SFC, 9-Feb-2021
The top 20 holders have 92.96%.
SFC obtains DQ against Duncan Chiu Tat Kun & Michael Lui Hung Kwong of Far East Holdings International Ltd (0036)Judgment
SFC, 9-Feb-2021
It's quite amazing that Duncan Chiu has been allowed to carry on as a government-appointed director of the Cyberport and Hospital Authority. Also notable that Mr Fong Hup of Deloitte gave a clean audit on the 2007 accounts after learning of the situation. Duncan Chiu now accepts that the accounts were misleading by omission and this amounted to misconduct. The INEDs, as Audit Committee, also signed off. The 2 respondents, along with late Chairman Deacon Chiu's assistant Wendy Yung Kim Bing, were acquitted in 2012 of criminal fraud charges relating to the same loan.
HKSAR v Jimmy Lai Chee Ying
HK Court of Final Appeal, 9-Feb-2021
Censure of Brightoil Petroleum (ex-0933) and 4 directors
SEHK, 3-Feb-2021
They failed to announce SEHK Listing Committee's decision to delist the company - something that SEHK could have announced anyway. Why doesn't SEHK announce its own decisions and appeals against them, to keep the market informed?
Lai Xiaomin, ex-Chairman of China Huarong Asset Management (2799) executedHuarong-CMB network
Reuters, 29-Jan-2021
The company featured in our "Huarong-CMB network - 26 stocks not to own" article of 19-Oct-2018.
SFC freezes accounts at 5 brokers, suspects market manipulationRestriction Notices
SFC, 26-Jan-2021
The stock which was allegedly manipulated between Sep-2020 and Oct-2020 is not named. The total amount targeted in the Restriction Notices is HK$153.78m. We note that one of the brokers, Realord Asia Pacific Securities Ltd, is owned by Realord (1196), which we consider is in a bubble. 3 of the brokers (Realord, AMC Wanhai and Eddid) were in the top 7 CCASS Participants in that stock at 30-Sep-2020.
David Perry QC withdraws from prosecuting pan-dems
HK Government, 20-Jan-2021
4 days after we queried how he proposed to get to HK given the ban on travel from the UK, Mr Perry withdraws, partly because of "the exemption of quarantine". By the way, this case involves alleged offences under the Public Order Ordinance, not the National Security Law. UK Foreign Secretary Dominic Raab was wrong on that point, but it's an easy mistake to make given that over 50 pan-dems were arrested under suspicion of NSL offences 2 weeks ago.
Specially Designated Nationals list updateState Department Press Statement
US Treasury, 15-Jan-2021
The detailed list of persons sanctioned by the United States yesterday.
Back on TraHK (2800)
Company announcement, 13-Jan-2021
Without giving reasons, fund manager State Street (ultimately a US person) now says that TraHK will resume investments in US-sanctioned stocks in the HSI, 2 days after it stopped. 2% of the units have been redeemed since then. This comes after Webb-site called for the Supervisory Committee to remove State Street and replace it with a non-US person. Will they change their mind a second time, like the New York Stock Exchange did when it delisted the stocks? Wait and see.
Re David Perry QC
HK Court of First Instance, 12-Jan-2021
Mr Perry is approved to visit HK and prosecute leading pan-democrats for unauthorised assembly. Trial begins 16-Feb, but all arrivals from UK are currently banned - will the Govt exempt him, or is he already here? Like HK residents stranded in the UK, he could go somewhere else for 21 days and then do 21 days quarantine in HK, but that's 42 days of taxpayers' fees before he starts, not before 24-Feb.
Previously on Webb-site.com
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