News

Simsen Capital Finance Ltd v Jiang Quanlong, Chairman of China Rare Earth (0769) and Pan Asia Environmental Protection (0556)Loan announcement
HK Court of First Instance, 16-Mar-2017
The defence case involves a tale of Macau gambling debts and the people behind Imperial Pacific (1076). The original loan was announced by Simsen (now Huarong International Financial Holdings Ltd) on 27-Jun-2014, but it did not disclose the borrower. The plaintiff's application for summary judgment in the amount of HK$212m is dismissed. The court rules that there is a triable issue as to whether the loan is enforcable.
SFC fines BOCOM International (Asia) Ltd HK$15m for sponsor failuresSponsorship performance
SFC, 15-Mar-2017
We note that BOCOM International Holdings Co Ltd itself has filed a listing aplication proof on 17-Jan-2017. Its sponsors include its subsidiary. Up to last night, the average 1-year Webb-site Total Return of BIAL's 17 sponsorships was -18.94%, or -21.15% relative to the market.
Defeated 2015 DC election candidate fined for missing election return
ICAC, 13-Mar-2017
The fine was HK$5k, probably somewhat less than his election expenses.
Statement on recent GEM listing applicants
SFC, 13-Mar-2017
The stock that was suspended after its first morning of trading is GME Group (8188). The four that have delayed their listings are Hao Bai International, My Heart Bodibra, Speed Apparel and Xiangxing International.
Govt to designate cinema sites in next land sale
RTHK, 13-Mar-2017
Because of course, in its infallible and infinite wisdom, the Government knows how many cinemas there should be and where to put them, and the market doesn't. If this isn't central planning, then what is? What has become of HK's market economy?
ECJ rules no right to be forgotten in the companies register data
European Court of Justice, 9-Mar-2017
At last, a bit of common sense emerges from the ECJ. Kudos to the Lecce Chamber of Commerce, Italy, for standing up for its rights by appealing against a lower court ruling, resulting in the Court of Cassation referring the matter to the ECJ. Salvatore Manni wanted his past business failure to be forgotten, arguing that his current potential customers had found it relevant - which rather makes the point that relevancy is in the eye of the beholder and registries should not be required to redact data.
MMT sanctions Yorkey Optical (2788), its CEO and Financial Controller for late disclosure of Inside InformationSFO s307Z
SFC, 28-Feb-2017
The CEO and company are each fined HK$1m. Ironically then, shareholders are paying for not being told about Inside Information. The HK Treasury gets HK$2m, but 115 investors who overpaid by HK$1.53m during a 13-week period get nothing. The SFC could claim for them under SFO s213, but has not. It appears investors in small-caps are on their own, and must make their own claims under SFO s307Z.
SGX said to consider giving traders their lunch break back
Singapore Business Times, 24-Feb-2017
They reportedly also propose widening the bid-offer spread, which is a sure-fire way to reduce liquidity, not increase it. This is another sign of desparation after the proposal to list second-class shares. Who is running SGX these days? What next - introducing minimum commissions? Rather than fiddle with trading hours and rules, consider allowing competing exchanges, then let the market discover which hours and spreads it wants.
Press statement from WKCDA
Webb-site.com, 22-Feb-2017
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.
SFC directs suspension of GME (8188) on day 1
SEHK, 22-Feb-2017
We don't yet know the reason for the suspension, but the stock is up 543% on its placing price. However, if that is the only reason, then why hasn't the SFC suspended other bubbles like China Jicheng (1027), Luen Wong (8217), Tai Kam (8321), Fullshare (0607) and Zall (2098), to name just a few?

Our stories

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)
China Innovative Finance (0412) bubble
Hao Tian Development (0474) has confirmed our view by dumping 9.06% of CIFG at a 61.9% discount, still well above the net tangible asset value of $0.099. CIFG should trade below NTAV due to its appalling governance and membership of what we call the "Chung Nam Network". The purported profits of its leasing division are largely illusory and depend heavily on 1 customer in which CIFG has invested. HTD has also been allowed by HKEX to skirt the Listing Rules on corporate transactions. (26-Sep-2016)

Other news

Simsen Capital Finance Ltd v Jiang Quanlong, Chairman of China Rare Earth (0769) and Pan Asia Environmental Protection (0556)Loan announcement
HK Court of First Instance, 16-Mar-2017
The defence case involves a tale of Macau gambling debts and the people behind Imperial Pacific (1076). The original loan was announced by Simsen (now Huarong International Financial Holdings Ltd) on 27-Jun-2014, but it did not disclose the borrower. The plaintiff's application for summary judgment in the amount of HK$212m is dismissed. The court rules that there is a triable issue as to whether the loan is enforcable.
SFC fines BOCOM International (Asia) Ltd HK$15m for sponsor failuresSponsorship performance
SFC, 15-Mar-2017
We note that BOCOM International Holdings Co Ltd itself has filed a listing aplication proof on 17-Jan-2017. Its sponsors include its subsidiary. Up to last night, the average 1-year Webb-site Total Return of BIAL's 17 sponsorships was -18.94%, or -21.15% relative to the market.
Defeated 2015 DC election candidate fined for missing election return
ICAC, 13-Mar-2017
The fine was HK$5k, probably somewhat less than his election expenses.
Statement on recent GEM listing applicants
SFC, 13-Mar-2017
The stock that was suspended after its first morning of trading is GME Group (8188). The four that have delayed their listings are Hao Bai International, My Heart Bodibra, Speed Apparel and Xiangxing International.
Govt to designate cinema sites in next land sale
RTHK, 13-Mar-2017
Because of course, in its infallible and infinite wisdom, the Government knows how many cinemas there should be and where to put them, and the market doesn't. If this isn't central planning, then what is? What has become of HK's market economy?
ECJ rules no right to be forgotten in the companies register data
European Court of Justice, 9-Mar-2017
At last, a bit of common sense emerges from the ECJ. Kudos to the Lecce Chamber of Commerce, Italy, for standing up for its rights by appealing against a lower court ruling, resulting in the Court of Cassation referring the matter to the ECJ. Salvatore Manni wanted his past business failure to be forgotten, arguing that his current potential customers had found it relevant - which rather makes the point that relevancy is in the eye of the beholder and registries should not be required to redact data.
Previously on Webb-site.com
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