News
MMT sanctions CMBC Capital (1141) and 6 ex-directors for late disclosure in 2014
SFC, 16-Oct-2020
The MMT's report will be on its website, one day.
SFC, 16-Oct-2020
The MMT's report will be on its website, one day.
Finding Virtue in the Finance Industry
| The Book
Harvard Business Review, 12-Oct-2020
An article featuring David Webb's work which is covered in JC de Swaan's new book "Seeking Virtue in Finance" from Cambridge University Press.
Harvard Business Review, 12-Oct-2020
An article featuring David Webb's work which is covered in JC de Swaan's new book "Seeking Virtue in Finance" from Cambridge University Press.
HK Judge misreads HK company law
HK Court of First Instance, 9-Oct-2020
Justice Linda Chan rejects the Allied Props (0056) privatisation, partly because of the voting headcount. Neither she nor Senior Counsel William Wong, leading 2 more barristers, realise that the headcount on privatisations was scrapped years ago. She also dislikes that part of the payout was coming from Allied Properties itself, and there would be no such dividend if the scheme was rejected. The offer was at a 66% discount to NAV but was 99% approved as minority shareholders again threw in the towel, which says something about the state of corporate governance in HK.
HK Court of First Instance, 9-Oct-2020
Justice Linda Chan rejects the Allied Props (0056) privatisation, partly because of the voting headcount. Neither she nor Senior Counsel William Wong, leading 2 more barristers, realise that the headcount on privatisations was scrapped years ago. She also dislikes that part of the payout was coming from Allied Properties itself, and there would be no such dividend if the scheme was rejected. The offer was at a 66% discount to NAV but was 99% approved as minority shareholders again threw in the towel, which says something about the state of corporate governance in HK.
Concentration warning in Evergrande Health Industry (0708)
SFC, 19-Aug-2020
The top 19 holders have 94.82%.
SFC, 19-Aug-2020
The top 19 holders have 94.82%.
SFC issues restriction notices to two brokerages to freeze accounts of client involved in suspected corporate misconduct
SFC, 14-Aug-2020
There's no disclosure of the listed company involved. Our database records that both of the brokers acted as placing agents to companies in the "Enigma Network" up to 2016. The brokers are not under investigation, but an individual client is suspected of breaching his duties to a listed company. The Notices are remarkably brief, no longer referring to a "Statement of Reasons", which the SFC has stopped publishing anyway, probably because we kept figuring out the identities of persons involved. The "specified amount" involved is not disclosed either.
SFC, 14-Aug-2020
There's no disclosure of the listed company involved. Our database records that both of the brokers acted as placing agents to companies in the "Enigma Network" up to 2016. The brokers are not under investigation, but an individual client is suspected of breaching his duties to a listed company. The Notices are remarkably brief, no longer referring to a "Statement of Reasons", which the SFC has stopped publishing anyway, probably because we kept figuring out the identities of persons involved. The "specified amount" involved is not disclosed either.
SFC bans Mr Chan Yiu Ting, ex-China Tonghai Securities, for 18 months
SFC, 12-Aug-2020
For discretionary dealing for 7 years without the client's written authorization. It apparently took the broker that long to notice.
SFC, 12-Aug-2020
For discretionary dealing for 7 years without the client's written authorization. It apparently took the broker that long to notice.
Competition Commission to preserve cartel profits at container terminal
HK Competition Commission, 12-Aug-2020
Almost anything arriving by sea for the HK market lands at the 23 berths (96%) operated by the cartel. Rather than require competition, the CC would allow the 2 operators and 4 owners to lock in margins via price-fixing indexed at 2019 levels. The CC says "the price and margin trends... suggest limited competitive pressure on the Parties from outside Kwai Tsing". HK consumers pay for this, and there's no requirement to publish the accounts which show those margins. How disgraceful. It's becoming the Anti-Competition Commission.
HK Competition Commission, 12-Aug-2020
Almost anything arriving by sea for the HK market lands at the 23 berths (96%) operated by the cartel. Rather than require competition, the CC would allow the 2 operators and 4 owners to lock in margins via price-fixing indexed at 2019 levels. The CC says "the price and margin trends... suggest limited competitive pressure on the Parties from outside Kwai Tsing". HK consumers pay for this, and there's no requirement to publish the accounts which show those margins. How disgraceful. It's becoming the Anti-Competition Commission.
SFC statement on Next Digital (0282)
SFC, 11-Aug-2020
We would add that investors should be aware that by buying shares in the market, they are not supporting the company, they are supporting those who are selling. Just saying.
SFC, 11-Aug-2020
We would add that investors should be aware that by buying shares in the market, they are not supporting the company, they are supporting those who are selling. Just saying.
SFC issues restriction notices to two brokers to freeze client accounts linked to suspected market manipulation
SFC, 11-Aug-2020
SFC, 11-Aug-2020
Court fines Brilliance Capital Management Ltd and Mr Law Sai Hung for unlicensed activities
SFC, 24-Jul-2020
SFC, 24-Jul-2020
HK Financial Secretary's letter to SFC on National Security Law
SFC, 17-Jul-2020
This "Dear Ashley" letter was circulated to intermediaries by the SFC on Friday night but doesn't appear on its website, so now it appears on ours. Good to know that we remain free to opine that the mainland's centrally-planned, authoritarian, state-owned economy is unsustainable and will eventually change to a democratic, open, free-market economy and society to deliver the growth that its citizens expect.
SFC, 17-Jul-2020
This "Dear Ashley" letter was circulated to intermediaries by the SFC on Friday night but doesn't appear on its website, so now it appears on ours. Good to know that we remain free to opine that the mainland's centrally-planned, authoritarian, state-owned economy is unsustainable and will eventually change to a democratic, open, free-market economy and society to deliver the growth that its citizens expect.
Kong Mo Hon, ex-YF Life Insurance, charged with HK$130k bonus fraud
ICAC, 16-Jul-2020
And all that on just one policy!
ICAC, 16-Jul-2020
And all that on just one policy!
Concentration warning in Wing Fung Group Asia (8526)
SFC, 14-Jul-2020
The top 26 holders have 90.81%.
SFC, 14-Jul-2020
The top 26 holders have 90.81%.
Concentration warning in Ritamix
SFC, 13-Jul-2020
The top 17 holders have 93.22%. The stock was listed on 13-May-2020 with a 25% float and has gained 460% since then.
SFC, 13-Jul-2020
The top 17 holders have 93.22%. The stock was listed on 13-May-2020 with a 25% float and has gained 460% since then.
Simon Chan Ying Ming convicted of unlicensed dealing, fined HK$20k.
SFC, 9-Jul-2020
We note from our archive that a person of this name was jailed in 1998 for operating an unlicensed deposit-taker. This time, 2 investors entrusted his unlicensed firm with HK$850k and lost $710k of it.
SFC, 9-Jul-2020
We note from our archive that a person of this name was jailed in 1998 for operating an unlicensed deposit-taker. This time, 2 investors entrusted his unlicensed firm with HK$850k and lost $710k of it.
SFC bans Lai Wing Fat for 20 months
SFC, 7-Jul-2020
For unauthorised transactions in a client account. His then firm, Black Marble Securities, is owned by Lerado (1225), part of the Enigma Network.
SFC, 7-Jul-2020
For unauthorised transactions in a client account. His then firm, Black Marble Securities, is owned by Lerado (1225), part of the Enigma Network.
David Webb, Emily Lau on "Saturday AM" radio re National Security Law
Australian Broadcasting Corporation, 4-Jul-2020
Australian Broadcasting Corporation, 4-Jul-2020
Convoy Collateral Ltd v Roy Cho Kwai Chee & others
HK Court of Appeal, 3-Jul-2020
Convoy (1019) succeeds in its appeal, obtaining a restraining order against Roy Cho Kwai Chee over HK$654m of his assets in this Enigma Network case, ruling that Justice Jonathan Harris had erred on points of law (paragraph 55).
HK Court of Appeal, 3-Jul-2020
Convoy (1019) succeeds in its appeal, obtaining a restraining order against Roy Cho Kwai Chee over HK$654m of his assets in this Enigma Network case, ruling that Justice Jonathan Harris had erred on points of law (paragraph 55).
SFC starts false trading prosecution against Ke Wen Hua
SFC, 2-Jul-2020
Almost 8 years after the alleged dealing in Carry Wealth (0643), the SFC races into action. Case adjourned as he now needs more time to seek legal advice.
SFC, 2-Jul-2020
Almost 8 years after the alleged dealing in Carry Wealth (0643), the SFC races into action. Case adjourned as he now needs more time to seek legal advice.
SFC bans Joanna Chu Lai Wa, ex-RO of Guosen Securities, for 1 year
SFC, 23-Jun-2020
For turning a blind eye to third-party deposits into client accounts.
SFC, 23-Jun-2020
For turning a blind eye to third-party deposits into client accounts.
SFC fines Guotai Junan Securities HK$25.2m
SFC, 22-Jun-2020
This partly relates to the handling of the IPO of an unnamed company which we can reveal is Jujiang Construction (1459) in Jan-2016.
SFC, 22-Jun-2020
This partly relates to the handling of the IPO of an unnamed company which we can reveal is Jujiang Construction (1459) in Jan-2016.
Our stories
A special message from our Founder
Unfortunately, there are going to be some changes around here. (8-Jun-2020)
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)
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)
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)
COVID-19: where do we go from here?
HK is essentially clean: data indicate the latest community transmission was 24 days ago. A potential travel network of clean quarantined countries is emerging, but many others are pursuing a mitigation approach, flattening the curve but leading to the likely premature death of 0.5% of their populations unless interrupted by a vaccine or treatment. We find lessons to be learned from HK's early mistakes. HK should maintain its quarantine and its people should now be free to enjoy their city. (27-Apr-2020)
HK is essentially clean: data indicate the latest community transmission was 24 days ago. A potential travel network of clean quarantined countries is emerging, but many others are pursuing a mitigation approach, flattening the curve but leading to the likely premature death of 0.5% of their populations unless interrupted by a vaccine or treatment. We find lessons to be learned from HK's early mistakes. HK should maintain its quarantine and its people should now be free to enjoy their city. (27-Apr-2020)
CPG interference: HK's Ministry of Truth on Article 22
In an act straight out of George Orwell's 1984, the HK Govt's news agency has been caught modifying and backdating a press release to comply with the Central People's Government's Liaison Office view that it is not a CPG department and not subject to Article 22 of the Basic Law. It actually makes no difference: if the CPG itself interferes in matters which are within HK's autonomy under the Basic Law, then it undermines "Two Systems". (20-Apr-2020)
In an act straight out of George Orwell's 1984, the HK Govt's news agency has been caught modifying and backdating a press release to comply with the Central People's Government's Liaison Office view that it is not a CPG department and not subject to Article 22 of the Basic Law. It actually makes no difference: if the CPG itself interferes in matters which are within HK's autonomy under the Basic Law, then it undermines "Two Systems". (20-Apr-2020)
HK employers must eat this free lunch
An economically illiterate leadership has decided to spray HK$80bn at HK's economy, benefitting employers who had no intention of making lay-offs, by paying the firms up to HK$54k per job. Some firms have even prospered during COVID-19. It's a wasteful way to return hoarded reserves to the economy, but all companies now have a legal duty to shareholders to eat this free lunch. They should resist any Government pressure to not collect it. (9-Apr-2020)
An economically illiterate leadership has decided to spray HK$80bn at HK's economy, benefitting employers who had no intention of making lay-offs, by paying the firms up to HK$54k per job. Some firms have even prospered during COVID-19. It's a wasteful way to return hoarded reserves to the economy, but all companies now have a legal duty to shareholders to eat this free lunch. They should resist any Government pressure to not collect it. (9-Apr-2020)
HK Government has no power to suspend school classes
As class suspensions drag into a third month, we look at who exactly is responsible. Surprise: it's not the Government, which can only advise, and it's now time for schools and their governing bodies to take the lead and learn from the parallel case of Singapore, where schools have remained open without causing an outbreak. We also call on HK to ban non-resident arrivals, and look at what other countries must do, or suffer, to get COVID-19 under control. (22-Mar-2020)
As class suspensions drag into a third month, we look at who exactly is responsible. Surprise: it's not the Government, which can only advise, and it's now time for schools and their governing bodies to take the lead and learn from the parallel case of Singapore, where schools have remained open without causing an outbreak. We also call on HK to ban non-resident arrivals, and look at what other countries must do, or suffer, to get COVID-19 under control. (22-Mar-2020)
Carrie Lam risks international travel ban on HK residents
Once again Mrs Lam is putting "One Country" ahead of "Two Systems". By keeping a porous border while imposing an unprecedented lockdown within HK, we risk an escalation of confirmed cases of 2019-nCoV and a consequent inclusion in the entry bans now imposed by Singapore and USA which other countries are likely to follow. Mrs Lam, stand up for Hong Kong. (1-Feb-2020)
Once again Mrs Lam is putting "One Country" ahead of "Two Systems". By keeping a porous border while imposing an unprecedented lockdown within HK, we risk an escalation of confirmed cases of 2019-nCoV and a consequent inclusion in the entry bans now imposed by Singapore and USA which other countries are likely to follow. Mrs Lam, stand up for Hong Kong. (1-Feb-2020)
Getting to 601: How Beijing controls the HK Chief Executive election
Carrie Lam continues to peddle the lie that the Chief Executive Election Committee is "broadly representative", often unchallenged by foreign media. We explain exactly how it is rigged, and how with enough political courage, she could unrig it and introduce democracy through local legislation, without Beijing's approval. (28-Jan-2020)
Carrie Lam continues to peddle the lie that the Chief Executive Election Committee is "broadly representative", often unchallenged by foreign media. We explain exactly how it is rigged, and how with enough political courage, she could unrig it and introduce democracy through local legislation, without Beijing's approval. (28-Jan-2020)
Your right to insult the national anthem
The HK Government is preparing to ignite fresh protests by resuming the Second Reading of the Bill, which must occur by July, or the bill lapses. Last night, it ridiculously claimed that the Bill is not a restriction of free speech. Of course it is. The only question is whether that is constitutional. (11-Jan-2020)
The HK Government is preparing to ignite fresh protests by resuming the Second Reading of the Bill, which must occur by July, or the bill lapses. Last night, it ridiculously claimed that the Bill is not a restriction of free speech. Of course it is. The only question is whether that is constitutional. (11-Jan-2020)
Pop goes the ArtGo bubble
| Lose your marbles
It took them a while, but MSCI now says "Following further analysis and feedback from market participants on investability", ArtGo (3313) will not go into the MSCI index. The stock is down 98% as we write. Our bubble warning on 15-Sep-2019 is proven correct. (21-Nov-2019)
It took them a while, but MSCI now says "Following further analysis and feedback from market participants on investability", ArtGo (3313) will not go into the MSCI index. The stock is down 98% as we write. Our bubble warning on 15-Sep-2019 is proven correct. (21-Nov-2019)
Judge takes aim at comments by Vice Premier
In continuing the injunction against doxxing with an exception for legitimate news activity, Justice Russell Coleman makes interesting comments on the role of the judiciary and the need for a political solution to the social unrest, which is beyond the scope of the courts. (11-Nov-2019)
In continuing the injunction against doxxing with an exception for legitimate news activity, Justice Russell Coleman makes interesting comments on the role of the judiciary and the need for a political solution to the social unrest, which is beyond the scope of the courts. (11-Nov-2019)
Facilitating shareholder activism in Asia
Webb-site founder David Webb presented at the PNB Corporate Summit in Kuala Lumpur yesterday. In the opening address, Prime Minister Mahathir Mohamad declared that "Government has no business to be in business". That's encouraging, if it means that Malaysia will sell off Government-Linked Companies in a wave of public offers, harnessing market forces to boost growth and shared prosperity. (31-Oct-2019)
Webb-site founder David Webb presented at the PNB Corporate Summit in Kuala Lumpur yesterday. In the opening address, Prime Minister Mahathir Mohamad declared that "Government has no business to be in business". That's encouraging, if it means that Malaysia will sell off Government-Linked Companies in a wave of public offers, harnessing market forces to boost growth and shared prosperity. (31-Oct-2019)
Does your candidate live where you do?
A knee-jerk amendment to the laws on nomination of DC and LegCo candidates goes too far by removing your right to know whether the candidate even lives in your constituency and/or District. We call on LegCo to amend the subsidiary legislation. (18-Oct-2019)
A knee-jerk amendment to the laws on nomination of DC and LegCo candidates goes too far by removing your right to know whether the candidate even lives in your constituency and/or District. We call on LegCo to amend the subsidiary legislation. (18-Oct-2019)
ERO: one judicial review, two judges
Webb-site has learned that in a very rare move, the Chief Justice has directed that 2 judges sit together in the Court of First Instance to hear the judicial review of the Chief Executive's use of the Emergency Regulations Ordinance. (16-Oct-2019)
Webb-site has learned that in a very rare move, the Chief Justice has directed that 2 judges sit together in the Court of First Instance to hear the judicial review of the Chief Executive's use of the Emergency Regulations Ordinance. (16-Oct-2019)
Other news
MMT sanctions CMBC Capital (1141) and 6 ex-directors for late disclosure in 2014
SFC, 16-Oct-2020
The MMT's report will be on its website, one day.
SFC, 16-Oct-2020
The MMT's report will be on its website, one day.
Finding Virtue in the Finance Industry
| The Book
Harvard Business Review, 12-Oct-2020
An article featuring David Webb's work which is covered in JC de Swaan's new book "Seeking Virtue in Finance" from Cambridge University Press.
Harvard Business Review, 12-Oct-2020
An article featuring David Webb's work which is covered in JC de Swaan's new book "Seeking Virtue in Finance" from Cambridge University Press.
HK Judge misreads HK company law
HK Court of First Instance, 9-Oct-2020
Justice Linda Chan rejects the Allied Props (0056) privatisation, partly because of the voting headcount. Neither she nor Senior Counsel William Wong, leading 2 more barristers, realise that the headcount on privatisations was scrapped years ago. She also dislikes that part of the payout was coming from Allied Properties itself, and there would be no such dividend if the scheme was rejected. The offer was at a 66% discount to NAV but was 99% approved as minority shareholders again threw in the towel, which says something about the state of corporate governance in HK.
HK Court of First Instance, 9-Oct-2020
Justice Linda Chan rejects the Allied Props (0056) privatisation, partly because of the voting headcount. Neither she nor Senior Counsel William Wong, leading 2 more barristers, realise that the headcount on privatisations was scrapped years ago. She also dislikes that part of the payout was coming from Allied Properties itself, and there would be no such dividend if the scheme was rejected. The offer was at a 66% discount to NAV but was 99% approved as minority shareholders again threw in the towel, which says something about the state of corporate governance in HK.
Concentration warning in Evergrande Health Industry (0708)
SFC, 19-Aug-2020
The top 19 holders have 94.82%.
SFC, 19-Aug-2020
The top 19 holders have 94.82%.
SFC issues restriction notices to two brokerages to freeze accounts of client involved in suspected corporate misconduct
SFC, 14-Aug-2020
There's no disclosure of the listed company involved. Our database records that both of the brokers acted as placing agents to companies in the "Enigma Network" up to 2016. The brokers are not under investigation, but an individual client is suspected of breaching his duties to a listed company. The Notices are remarkably brief, no longer referring to a "Statement of Reasons", which the SFC has stopped publishing anyway, probably because we kept figuring out the identities of persons involved. The "specified amount" involved is not disclosed either.
SFC, 14-Aug-2020
There's no disclosure of the listed company involved. Our database records that both of the brokers acted as placing agents to companies in the "Enigma Network" up to 2016. The brokers are not under investigation, but an individual client is suspected of breaching his duties to a listed company. The Notices are remarkably brief, no longer referring to a "Statement of Reasons", which the SFC has stopped publishing anyway, probably because we kept figuring out the identities of persons involved. The "specified amount" involved is not disclosed either.
SFC bans Mr Chan Yiu Ting, ex-China Tonghai Securities, for 18 months
SFC, 12-Aug-2020
For discretionary dealing for 7 years without the client's written authorization. It apparently took the broker that long to notice.
SFC, 12-Aug-2020
For discretionary dealing for 7 years without the client's written authorization. It apparently took the broker that long to notice.
Competition Commission to preserve cartel profits at container terminal
HK Competition Commission, 12-Aug-2020
Almost anything arriving by sea for the HK market lands at the 23 berths (96%) operated by the cartel. Rather than require competition, the CC would allow the 2 operators and 4 owners to lock in margins via price-fixing indexed at 2019 levels. The CC says "the price and margin trends... suggest limited competitive pressure on the Parties from outside Kwai Tsing". HK consumers pay for this, and there's no requirement to publish the accounts which show those margins. How disgraceful. It's becoming the Anti-Competition Commission.
HK Competition Commission, 12-Aug-2020
Almost anything arriving by sea for the HK market lands at the 23 berths (96%) operated by the cartel. Rather than require competition, the CC would allow the 2 operators and 4 owners to lock in margins via price-fixing indexed at 2019 levels. The CC says "the price and margin trends... suggest limited competitive pressure on the Parties from outside Kwai Tsing". HK consumers pay for this, and there's no requirement to publish the accounts which show those margins. How disgraceful. It's becoming the Anti-Competition Commission.
SFC statement on Next Digital (0282)
SFC, 11-Aug-2020
We would add that investors should be aware that by buying shares in the market, they are not supporting the company, they are supporting those who are selling. Just saying.
SFC, 11-Aug-2020
We would add that investors should be aware that by buying shares in the market, they are not supporting the company, they are supporting those who are selling. Just saying.
SFC issues restriction notices to two brokers to freeze client accounts linked to suspected market manipulation
SFC, 11-Aug-2020
SFC, 11-Aug-2020
Court fines Brilliance Capital Management Ltd and Mr Law Sai Hung for unlicensed activities
SFC, 24-Jul-2020
SFC, 24-Jul-2020
HK Financial Secretary's letter to SFC on National Security Law
SFC, 17-Jul-2020
This "Dear Ashley" letter was circulated to intermediaries by the SFC on Friday night but doesn't appear on its website, so now it appears on ours. Good to know that we remain free to opine that the mainland's centrally-planned, authoritarian, state-owned economy is unsustainable and will eventually change to a democratic, open, free-market economy and society to deliver the growth that its citizens expect.
SFC, 17-Jul-2020
This "Dear Ashley" letter was circulated to intermediaries by the SFC on Friday night but doesn't appear on its website, so now it appears on ours. Good to know that we remain free to opine that the mainland's centrally-planned, authoritarian, state-owned economy is unsustainable and will eventually change to a democratic, open, free-market economy and society to deliver the growth that its citizens expect.
Kong Mo Hon, ex-YF Life Insurance, charged with HK$130k bonus fraud
ICAC, 16-Jul-2020
And all that on just one policy!
ICAC, 16-Jul-2020
And all that on just one policy!
Concentration warning in Wing Fung Group Asia (8526)
SFC, 14-Jul-2020
The top 26 holders have 90.81%.
SFC, 14-Jul-2020
The top 26 holders have 90.81%.
Previously on Webb-site.com
Check out our full list of articles in the archive, since our launch in 1998.
Check out our full list of articles in the archive, since our launch in 1998.
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