News
Raising the Yorkey bar
Webb-site.com, 21-Oct-2021
What are we going to do about the proposed privatisation of Yorkey (2788)?
Webb-site.com, 21-Oct-2021
What are we going to do about the proposed privatisation of Yorkey (2788)?
HKICPA bans Mok Ching Ho for 4 years, fines him HK$80k
HKICPA, 19-Oct-2021
Mr Mok did 298 audits for 258 clients for HK$1.43m (an average of only $4805 per audit) and did little or no audit work on any of them. When the HKICPA came knocking, he fabricated working papers to cover it up.
HKICPA, 19-Oct-2021
Mr Mok did 298 audits for 258 clients for HK$1.43m (an average of only $4805 per audit) and did little or no audit work on any of them. When the HKICPA came knocking, he fabricated working papers to cover it up.
SFC fines Ample Capital Ltd HK$5.5m, suspends RO Howard Tang Ho Wai for 17 months
| Statement of Disciplinary Action
SFC, 18-Oct-2021
For bad due diligence on the aborted GEM IPO of COCCI International Ltd. We note that Mr Tang was disciplined in 2006, for similar matters on 2 GEM listing applications when he was a Responsible Officer of CSC Asia Ltd.
SFC, 18-Oct-2021
For bad due diligence on the aborted GEM IPO of COCCI International Ltd. We note that Mr Tang was disciplined in 2006, for similar matters on 2 GEM listing applications when he was a Responsible Officer of CSC Asia Ltd.
2 former EDs of Convoy Global (ex-1019) jailed for conspiracy to defraud
| ICAC press release
SFC, 16-Oct-2021
Mark Mak Kwong Yiu (7 months) and Christie Chan Lai Yee (5 months, suspended for 18 months) thereby enter the Webb-site Hall of Shame. They and their 2 co-defendants are the first persons connected to the "Enigma Network" exposed by Webb-site in 2017 to be sentenced. Comment: the sentences seem remarkably light by comparison with recent sentences for peaceful but unauthorised assemblies.
SFC, 16-Oct-2021
Mark Mak Kwong Yiu (7 months) and Christie Chan Lai Yee (5 months, suspended for 18 months) thereby enter the Webb-site Hall of Shame. They and their 2 co-defendants are the first persons connected to the "Enigma Network" exposed by Webb-site in 2017 to be sentenced. Comment: the sentences seem remarkably light by comparison with recent sentences for peaceful but unauthorised assemblies.
FRC investigates going-concern reporting of China Evergrande (3333)
Financial Reporting Council, 15-Oct-2021
Comment: we sense a certain amount of grandstanding, Monday-morning quarterbacking and 2020 hindsight. Perhaps the FRC should hire Andrew Left to help them out with their analysis. Whether Evergrande is or was viable as a going concern was always a matter of judgment for the directors as well as investors. What can be gained from investigating that judgment, and how much will it cost in regulatory resources?
Financial Reporting Council, 15-Oct-2021
Comment: we sense a certain amount of grandstanding, Monday-morning quarterbacking and 2020 hindsight. Perhaps the FRC should hire Andrew Left to help them out with their analysis. Whether Evergrande is or was viable as a going concern was always a matter of judgment for the directors as well as investors. What can be gained from investigating that judgment, and how much will it cost in regulatory resources?
SFC issues Restriction Notice to HF Asset Management Ltd
SFC, 7-Oct-2021
We note that the firms currently has only 2 licensed Representatives and no Responsible Officers.
SFC, 7-Oct-2021
We note that the firms currently has only 2 licensed Representatives and no Responsible Officers.
HKICPA fines Daniel Lin Ching Yee HK$200k and Kelvin Kwong Kam Wing HK$100k plus HK$3.64m costs
HKICPA, 7-Oct-2021
For bad audit work on E.Bon (0599) in 2010 and 2011.
HKICPA, 7-Oct-2021
For bad audit work on E.Bon (0599) in 2010 and 2011.
CST (0985) sells 32.18m Evergrande Vehicle (0708) shares at $3.89/share
Company announcement, 5-Oct-2021
At 31-Mar-2021, CST held 42.18m shares at HK$57.80. In the annual report, management wrote "The Group is optimistic about the prospects of China Evergrande Vehicle in the medium to long term, subject to market conditions."
Company announcement, 5-Oct-2021
At 31-Mar-2021, CST held 42.18m shares at HK$57.80. In the annual report, management wrote "The Group is optimistic about the prospects of China Evergrande Vehicle in the medium to long term, subject to market conditions."
HKICPA fines Stephen Tang Siu Kun HK$15k
HKICPA, 5-Oct-2021
This is a piggy-back action after the Market Misconduct Tribunal's findings against him and Magic Holdings (ex-1633) for late disclosure of Inside Information.
HKICPA, 5-Oct-2021
This is a piggy-back action after the Market Misconduct Tribunal's findings against him and Magic Holdings (ex-1633) for late disclosure of Inside Information.
Imagi (0585) exits Evergrande Vehicle (0708) crash at $3.84/share
Company announcement, 5-Oct-2021
At least they sold 7m shares last October at an average $21.60 - but then they HODL'd the remaining 3m until yesterday! Imagi is 21.31% owned by Oshidori (0622) which also owns 28.53% of Blue River (0498). All 3 of them held shares in Evergrande Vehicle.
Company announcement, 5-Oct-2021
At least they sold 7m shares last October at an average $21.60 - but then they HODL'd the remaining 3m until yesterday! Imagi is 21.31% owned by Oshidori (0622) which also owns 28.53% of Blue River (0498). All 3 of them held shares in Evergrande Vehicle.
Blue River (0498) exits Evergrande Vehicle (0708) crash at HK$3.23/share
Company announcement, 4-Oct-2021
In its annual report at 31-Mar-2021, Blue River held the 18.29m shares at $57.80 with an unrealised gain of $850m, so it is taking a 94.4% loss from there, or $998m. The report stated that Blue River's investment "is for trading purpose and aims to realise the gain in the future subject to market conditions". Blue River is 28.53% owned by Oshidori (0622), which also exited Evergrande Vehicle last week. Blue River also sold smaller holdings in China Evergrande (3333) and Evergrande Property Services (6666).
Company announcement, 4-Oct-2021
In its annual report at 31-Mar-2021, Blue River held the 18.29m shares at $57.80 with an unrealised gain of $850m, so it is taking a 94.4% loss from there, or $998m. The report stated that Blue River's investment "is for trading purpose and aims to realise the gain in the future subject to market conditions". Blue River is 28.53% owned by Oshidori (0622), which also exited Evergrande Vehicle last week. Blue River also sold smaller holdings in China Evergrande (3333) and Evergrande Property Services (6666).
Enigma Network member Capital VC (2324) launches 20% placement at 84.2% discount to NAV
Company announcement, 4-Oct-2021
This is a "Chapter 21" closed-end investment company. The announcement fails to mention the discount or the resulting 14.0% dilution of NAV. How can this be in the interests of shareholders? Why do the SFC and HKEX still tolerate such issues by Chapter 21 companies, the sole mission of which should be to grow NAV per share?
Company announcement, 4-Oct-2021
This is a "Chapter 21" closed-end investment company. The announcement fails to mention the discount or the resulting 14.0% dilution of NAV. How can this be in the interests of shareholders? Why do the SFC and HKEX still tolerate such issues by Chapter 21 companies, the sole mission of which should be to grow NAV per share?
Banker Hiram Ip Hon Lam, son of ex-Govt Secretary Stephen Ip Shu Kwan, jailed 8 months for possession of child pornography (Chinese)
Oriental Daily, 1-Oct-2021
Oriental Daily, 1-Oct-2021
Oshidori (0622) exits Evergrande Vehicle (0708) crash at $2.40/share
Company announcement, 30-Sep-2021
In the 2020 Annual Report, management wrote "The investment… will bring a healthy return in the medium to long run". This was despite the SFC having warned the market that on 5-Aug-2020, the top 19 holders held 94.82% of the stock, following a rapid escalation of the price. At 31-Dec-2020, Oshidori held the stock at $30.20 (HK$4,175m), so the sale will involve a 92% comprehensive loss from that point, or $3,843m, excluding tax and expenses. Oshidori also holds 8.25% of the H-shares of Shengjing Bank (2066), in which Evergrande (3333) was the largest equity holder until last week's fire sale to an SOE.
Company announcement, 30-Sep-2021
In the 2020 Annual Report, management wrote "The investment… will bring a healthy return in the medium to long run". This was despite the SFC having warned the market that on 5-Aug-2020, the top 19 holders held 94.82% of the stock, following a rapid escalation of the price. At 31-Dec-2020, Oshidori held the stock at $30.20 (HK$4,175m), so the sale will involve a 92% comprehensive loss from that point, or $3,843m, excluding tax and expenses. Oshidori also holds 8.25% of the H-shares of Shengjing Bank (2066), in which Evergrande (3333) was the largest equity holder until last week's fire sale to an SOE.
China Strategic (0235) sells 70m shares of Evergrande Vehicle (0708) at $2.28 each
Company announcement, 29-Sep-2021
The buyer, Mr Hung Hon Man, is probably the Chairman and CEO of Get Nice (0064). At 31-Dec-2020, CS held 133.6m shares at $30.20 or $4,035m in total. Management wrote in the annual report "The Group is optimistic about the prospect of Evergrande Vehicle in the medium to long-term. Subject to market conditions, the Group presently has no intention to realise this investment." That is despite an SFC concentration warning on the stock in Aug-2020. CS presumably still holds 63.6m shares.
Company announcement, 29-Sep-2021
The buyer, Mr Hung Hon Man, is probably the Chairman and CEO of Get Nice (0064). At 31-Dec-2020, CS held 133.6m shares at $30.20 or $4,035m in total. Management wrote in the annual report "The Group is optimistic about the prospect of Evergrande Vehicle in the medium to long-term. Subject to market conditions, the Group presently has no intention to realise this investment." That is despite an SFC concentration warning on the stock in Aug-2020. CS presumably still holds 63.6m shares.
HKICPA fines KPMG, June Yu Yuk Ping & Yu Wai Sum HK$1m total, plus HK$5m costs
HKICPA, 23-Sep-2021
For bad audits of China Forestry (ex-0930) for 2006-2009. They win our "Can't See the Forest for the Trees" award. The Financial Reporting Council didn't start investigating until 2012, and its Audit Investigation Board reported back in 2016. The HKICPA then launched this case in 2017. Meanwhile China Forestry last traded with a market cap of HK$9.03bn in 2011 and went into liquidation in 2015.
HKICPA, 23-Sep-2021
For bad audits of China Forestry (ex-0930) for 2006-2009. They win our "Can't See the Forest for the Trees" award. The Financial Reporting Council didn't start investigating until 2012, and its Audit Investigation Board reported back in 2016. The HKICPA then launched this case in 2017. Meanwhile China Forestry last traded with a market cap of HK$9.03bn in 2011 and went into liquidation in 2015.
HK's cash for IPOs bribery trial enters the final stages
Asian Corporate Governance Association, 21-Sep-2021
Kudos to ACGA's Vivian Yau for sitting through 6 weeks of evidence and providing this detailed account.
Asian Corporate Governance Association, 21-Sep-2021
Kudos to ACGA's Vivian Yau for sitting through 6 weeks of evidence and providing this detailed account.
SFC-ICAC operation leads to conviction of ex-senior executives of Convoy (ex-1019)
| ICAC announcement
SFC, 20-Sep-2021
At last, some convictions in the "Enigma Network" that we exposed in 2017. It's a start.
SFC, 20-Sep-2021
At last, some convictions in the "Enigma Network" that we exposed in 2017. It's a start.
Ex-AXA insurance agents charged with alleged HK$1.2m fraud and HK$2.7m money laundering
ICAC, 14-Sep-2021
ICAC, 14-Sep-2021
Trendzon (1865) buys 85% of Wealth Link Securities Ltd from VBG (8365) for HK$14m
| VBG announcement
Company announcement, 13-Sep-2021
Company announcement, 13-Sep-2021
Moody Technology (1400): re reported arrest of ex-CFO Siu Kai Chun and SFC-Police investigation
Company announcement, 10-Sep-2021
We note that Mr Siu is now Financial Controller and Company Secretary of Zhong Ao Home (1538).
Company announcement, 10-Sep-2021
We note that Mr Siu is now Financial Controller and Company Secretary of Zhong Ao Home (1538).
Ex-HSBC employee charged with conspiracy to accept bribes
ICAC, 8-Sep-2021
Allegedly, a friend controlled two borrowing companies that were held by nominees. Waty International Co Ltd was incorporated on 23-Jul-2005 and Mondex International Industries Ltd was incorporated on 22-Nov-2006. The loans were granted in 2012.
ICAC, 8-Sep-2021
Allegedly, a friend controlled two borrowing companies that were held by nominees. Waty International Co Ltd was incorporated on 23-Jul-2005 and Mondex International Industries Ltd was incorporated on 22-Nov-2006. The loans were granted in 2012.
URA ready to build subsidised flats, but needs land to move faster, chairman says
| L(CSFR)O
South China Morning Post, 6-Sep-2021
2 words, C.K.: "mission creep". URA's mission is in its name: Urban Renewal, not developing vacant land. Private sector can do that. Indeed, since 1999 with the Land (Compulsory Sale for Redevelopment) Ordinance, the private sector can do urban renewal too, and the URA has outlived its utility. Shut it down and let the market determine how much to pay to consolidate old buildings, buy out the minorities and redevelop.
South China Morning Post, 6-Sep-2021
2 words, C.K.: "mission creep". URA's mission is in its name: Urban Renewal, not developing vacant land. Private sector can do that. Indeed, since 1999 with the Land (Compulsory Sale for Redevelopment) Ordinance, the private sector can do urban renewal too, and the URA has outlived its utility. Shut it down and let the market determine how much to pay to consolidate old buildings, buy out the minorities and redevelop.
Our stories
Raising the Yorkey bar
What are we going to do about the proposed privatisation of Yorkey (2788)? (21-Oct-2021)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
Other news
HKICPA bans Mok Ching Ho for 4 years, fines him HK$80k
HKICPA, 19-Oct-2021
Mr Mok did 298 audits for 258 clients for HK$1.43m (an average of only $4805 per audit) and did little or no audit work on any of them. When the HKICPA came knocking, he fabricated working papers to cover it up.
HKICPA, 19-Oct-2021
Mr Mok did 298 audits for 258 clients for HK$1.43m (an average of only $4805 per audit) and did little or no audit work on any of them. When the HKICPA came knocking, he fabricated working papers to cover it up.
SFC fines Ample Capital Ltd HK$5.5m, suspends RO Howard Tang Ho Wai for 17 months
| Statement of Disciplinary Action
SFC, 18-Oct-2021
For bad due diligence on the aborted GEM IPO of COCCI International Ltd. We note that Mr Tang was disciplined in 2006, for similar matters on 2 GEM listing applications when he was a Responsible Officer of CSC Asia Ltd.
SFC, 18-Oct-2021
For bad due diligence on the aborted GEM IPO of COCCI International Ltd. We note that Mr Tang was disciplined in 2006, for similar matters on 2 GEM listing applications when he was a Responsible Officer of CSC Asia Ltd.
2 former EDs of Convoy Global (ex-1019) jailed for conspiracy to defraud
| ICAC press release
SFC, 16-Oct-2021
Mark Mak Kwong Yiu (7 months) and Christie Chan Lai Yee (5 months, suspended for 18 months) thereby enter the Webb-site Hall of Shame. They and their 2 co-defendants are the first persons connected to the "Enigma Network" exposed by Webb-site in 2017 to be sentenced. Comment: the sentences seem remarkably light by comparison with recent sentences for peaceful but unauthorised assemblies.
SFC, 16-Oct-2021
Mark Mak Kwong Yiu (7 months) and Christie Chan Lai Yee (5 months, suspended for 18 months) thereby enter the Webb-site Hall of Shame. They and their 2 co-defendants are the first persons connected to the "Enigma Network" exposed by Webb-site in 2017 to be sentenced. Comment: the sentences seem remarkably light by comparison with recent sentences for peaceful but unauthorised assemblies.
FRC investigates going-concern reporting of China Evergrande (3333)
Financial Reporting Council, 15-Oct-2021
Comment: we sense a certain amount of grandstanding, Monday-morning quarterbacking and 2020 hindsight. Perhaps the FRC should hire Andrew Left to help them out with their analysis. Whether Evergrande is or was viable as a going concern was always a matter of judgment for the directors as well as investors. What can be gained from investigating that judgment, and how much will it cost in regulatory resources?
Financial Reporting Council, 15-Oct-2021
Comment: we sense a certain amount of grandstanding, Monday-morning quarterbacking and 2020 hindsight. Perhaps the FRC should hire Andrew Left to help them out with their analysis. Whether Evergrande is or was viable as a going concern was always a matter of judgment for the directors as well as investors. What can be gained from investigating that judgment, and how much will it cost in regulatory resources?
SFC issues Restriction Notice to HF Asset Management Ltd
SFC, 7-Oct-2021
We note that the firms currently has only 2 licensed Representatives and no Responsible Officers.
SFC, 7-Oct-2021
We note that the firms currently has only 2 licensed Representatives and no Responsible Officers.
HKICPA fines Daniel Lin Ching Yee HK$200k and Kelvin Kwong Kam Wing HK$100k plus HK$3.64m costs
HKICPA, 7-Oct-2021
For bad audit work on E.Bon (0599) in 2010 and 2011.
HKICPA, 7-Oct-2021
For bad audit work on E.Bon (0599) in 2010 and 2011.
CST (0985) sells 32.18m Evergrande Vehicle (0708) shares at $3.89/share
Company announcement, 5-Oct-2021
At 31-Mar-2021, CST held 42.18m shares at HK$57.80. In the annual report, management wrote "The Group is optimistic about the prospects of China Evergrande Vehicle in the medium to long term, subject to market conditions."
Company announcement, 5-Oct-2021
At 31-Mar-2021, CST held 42.18m shares at HK$57.80. In the annual report, management wrote "The Group is optimistic about the prospects of China Evergrande Vehicle in the medium to long term, subject to market conditions."
HKICPA fines Stephen Tang Siu Kun HK$15k
HKICPA, 5-Oct-2021
This is a piggy-back action after the Market Misconduct Tribunal's findings against him and Magic Holdings (ex-1633) for late disclosure of Inside Information.
HKICPA, 5-Oct-2021
This is a piggy-back action after the Market Misconduct Tribunal's findings against him and Magic Holdings (ex-1633) for late disclosure of Inside Information.
Imagi (0585) exits Evergrande Vehicle (0708) crash at $3.84/share
Company announcement, 5-Oct-2021
At least they sold 7m shares last October at an average $21.60 - but then they HODL'd the remaining 3m until yesterday! Imagi is 21.31% owned by Oshidori (0622) which also owns 28.53% of Blue River (0498). All 3 of them held shares in Evergrande Vehicle.
Company announcement, 5-Oct-2021
At least they sold 7m shares last October at an average $21.60 - but then they HODL'd the remaining 3m until yesterday! Imagi is 21.31% owned by Oshidori (0622) which also owns 28.53% of Blue River (0498). All 3 of them held shares in Evergrande Vehicle.
Blue River (0498) exits Evergrande Vehicle (0708) crash at HK$3.23/share
Company announcement, 4-Oct-2021
In its annual report at 31-Mar-2021, Blue River held the 18.29m shares at $57.80 with an unrealised gain of $850m, so it is taking a 94.4% loss from there, or $998m. The report stated that Blue River's investment "is for trading purpose and aims to realise the gain in the future subject to market conditions". Blue River is 28.53% owned by Oshidori (0622), which also exited Evergrande Vehicle last week. Blue River also sold smaller holdings in China Evergrande (3333) and Evergrande Property Services (6666).
Company announcement, 4-Oct-2021
In its annual report at 31-Mar-2021, Blue River held the 18.29m shares at $57.80 with an unrealised gain of $850m, so it is taking a 94.4% loss from there, or $998m. The report stated that Blue River's investment "is for trading purpose and aims to realise the gain in the future subject to market conditions". Blue River is 28.53% owned by Oshidori (0622), which also exited Evergrande Vehicle last week. Blue River also sold smaller holdings in China Evergrande (3333) and Evergrande Property Services (6666).
Enigma Network member Capital VC (2324) launches 20% placement at 84.2% discount to NAV
Company announcement, 4-Oct-2021
This is a "Chapter 21" closed-end investment company. The announcement fails to mention the discount or the resulting 14.0% dilution of NAV. How can this be in the interests of shareholders? Why do the SFC and HKEX still tolerate such issues by Chapter 21 companies, the sole mission of which should be to grow NAV per share?
Company announcement, 4-Oct-2021
This is a "Chapter 21" closed-end investment company. The announcement fails to mention the discount or the resulting 14.0% dilution of NAV. How can this be in the interests of shareholders? Why do the SFC and HKEX still tolerate such issues by Chapter 21 companies, the sole mission of which should be to grow NAV per share?
Banker Hiram Ip Hon Lam, son of ex-Govt Secretary Stephen Ip Shu Kwan, jailed 8 months for possession of child pornography (Chinese)
Oriental Daily, 1-Oct-2021
Oriental Daily, 1-Oct-2021
Oshidori (0622) exits Evergrande Vehicle (0708) crash at $2.40/share
Company announcement, 30-Sep-2021
In the 2020 Annual Report, management wrote "The investment… will bring a healthy return in the medium to long run". This was despite the SFC having warned the market that on 5-Aug-2020, the top 19 holders held 94.82% of the stock, following a rapid escalation of the price. At 31-Dec-2020, Oshidori held the stock at $30.20 (HK$4,175m), so the sale will involve a 92% comprehensive loss from that point, or $3,843m, excluding tax and expenses. Oshidori also holds 8.25% of the H-shares of Shengjing Bank (2066), in which Evergrande (3333) was the largest equity holder until last week's fire sale to an SOE.
Company announcement, 30-Sep-2021
In the 2020 Annual Report, management wrote "The investment… will bring a healthy return in the medium to long run". This was despite the SFC having warned the market that on 5-Aug-2020, the top 19 holders held 94.82% of the stock, following a rapid escalation of the price. At 31-Dec-2020, Oshidori held the stock at $30.20 (HK$4,175m), so the sale will involve a 92% comprehensive loss from that point, or $3,843m, excluding tax and expenses. Oshidori also holds 8.25% of the H-shares of Shengjing Bank (2066), in which Evergrande (3333) was the largest equity holder until last week's fire sale to an SOE.
China Strategic (0235) sells 70m shares of Evergrande Vehicle (0708) at $2.28 each
Company announcement, 29-Sep-2021
The buyer, Mr Hung Hon Man, is probably the Chairman and CEO of Get Nice (0064). At 31-Dec-2020, CS held 133.6m shares at $30.20 or $4,035m in total. Management wrote in the annual report "The Group is optimistic about the prospect of Evergrande Vehicle in the medium to long-term. Subject to market conditions, the Group presently has no intention to realise this investment." That is despite an SFC concentration warning on the stock in Aug-2020. CS presumably still holds 63.6m shares.
Company announcement, 29-Sep-2021
The buyer, Mr Hung Hon Man, is probably the Chairman and CEO of Get Nice (0064). At 31-Dec-2020, CS held 133.6m shares at $30.20 or $4,035m in total. Management wrote in the annual report "The Group is optimistic about the prospect of Evergrande Vehicle in the medium to long-term. Subject to market conditions, the Group presently has no intention to realise this investment." That is despite an SFC concentration warning on the stock in Aug-2020. CS presumably still holds 63.6m shares.
HKICPA fines KPMG, June Yu Yuk Ping & Yu Wai Sum HK$1m total, plus HK$5m costs
HKICPA, 23-Sep-2021
For bad audits of China Forestry (ex-0930) for 2006-2009. They win our "Can't See the Forest for the Trees" award. The Financial Reporting Council didn't start investigating until 2012, and its Audit Investigation Board reported back in 2016. The HKICPA then launched this case in 2017. Meanwhile China Forestry last traded with a market cap of HK$9.03bn in 2011 and went into liquidation in 2015.
HKICPA, 23-Sep-2021
For bad audits of China Forestry (ex-0930) for 2006-2009. They win our "Can't See the Forest for the Trees" award. The Financial Reporting Council didn't start investigating until 2012, and its Audit Investigation Board reported back in 2016. The HKICPA then launched this case in 2017. Meanwhile China Forestry last traded with a market cap of HK$9.03bn in 2011 and went into liquidation in 2015.
HK's cash for IPOs bribery trial enters the final stages
Asian Corporate Governance Association, 21-Sep-2021
Kudos to ACGA's Vivian Yau for sitting through 6 weeks of evidence and providing this detailed account.
Asian Corporate Governance Association, 21-Sep-2021
Kudos to ACGA's Vivian Yau for sitting through 6 weeks of evidence and providing this detailed account.
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