News
SFC fines Guosen Securities (HK) HK$15.2m for breaches of AML requirements
SFC, 18-Feb-2019
The firm processed over 2200 suspicious third-party deposits (i.e. not made by clients but into their accounts) totalling over HK$2.3bn in 14 months up to Dec-2015.
SFC, 18-Feb-2019
The firm processed over 2200 suspicious third-party deposits (i.e. not made by clients but into their accounts) totalling over HK$2.3bn in 14 months up to Dec-2015.
Revealed: SFC probes Chairman, CEO of Hua Han Health (0587), freezes their accounts
Webb-site.com, 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.
Webb-site.com, 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.
Central Wealth (0139) raises CEO's salary by 400%
Company announcement, 15-Feb-2019
The boost to HK$6m is "to provide incentive…to strive for the continual development and expansion of the Group" - but the pay is not performance-linked. Central Wealth is part of the Huarong-CMB network we warned readers about on 19-Oct-2018. The stock has dropped 64.1% since Mr Xu Ke joined the board as CEO on 27-Feb-2018.
Company announcement, 15-Feb-2019
The boost to HK$6m is "to provide incentive…to strive for the continual development and expansion of the Group" - but the pay is not performance-linked. Central Wealth is part of the Huarong-CMB network we warned readers about on 19-Oct-2018. The stock has dropped 64.1% since Mr Xu Ke joined the board as CEO on 27-Feb-2018.
HKICPA bans Henry Mok Wing Kai, ex-Financial Controller of Greencool, for 6 months
HKICPA, 14-Feb-2019
HKICPA, 14-Feb-2019
Chairman pledges controlling stake in IBO Tech (2708) to China Fortune (0290)
Webb-site.com, 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.
Webb-site.com, 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.
'Excellent Wife' cooking class offered by Hong Kong gas supplier
Bloomberg, 4-Feb-2019
As first reported by Webb-site.com. We're looking forward to the "Excellent Husband" how-to-repair-a-gas-stove course.
Bloomberg, 4-Feb-2019
As first reported by Webb-site.com. We're looking forward to the "Excellent Husband" how-to-repair-a-gas-stove course.
SFC revokes licence of W. Falcon Asset Management (Asia) Ltd
SFC, 4-Feb-2019
For window-dressing its month-end liquid capital with dud cheques.
SFC, 4-Feb-2019
For window-dressing its month-end liquid capital with dud cheques.
Ravi Gidumal & Shalini Mahtani v Dr Richard Chiu Wing & Matilda International Hospital
HK Court of First Instance, 31-Jan-2019
HK Court of First Instance, 31-Jan-2019
A simpler, fairer tax system
Webb-site.com, 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.
Webb-site.com, 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.
Chairman Yao Jianhui & others pledge 12.14% of China Goldjoy (1282) to Huarong Inv (2277)
Disclosure of interest, 29-Jan-2019
The shares were pledged by Mr Yao's wholly-owned Tinmark Development Ltd to Chelsea Manifest Fund, wholly-owned by Huarong Inv. Of the 3.14bn shares, 1.97bn were from Tinmark. The source of the others is unclear.
Disclosure of interest, 29-Jan-2019
The shares were pledged by Mr Yao's wholly-owned Tinmark Development Ltd to Chelsea Manifest Fund, wholly-owned by Huarong Inv. Of the 3.14bn shares, 1.97bn were from Tinmark. The source of the others is unclear.
Celebrate (8212) to buy Hope Securities Ltd from David Ki
| CCASS transfer
Company announcement, 29-Jan-2019
The broker, licensed on 9-Apr-2018, has only 2 licensed staff and only one stock in its CCASS account, Imagi (0585), transferred last Friday from Satinu Markets Ltd. Celebrate, Imagi and Satinu are all part of what we call the "Chung Nam Network". The deal is subject to SFC approval for the change of substantial shareholders of the broker.
Company announcement, 29-Jan-2019
The broker, licensed on 9-Apr-2018, has only 2 licensed staff and only one stock in its CCASS account, Imagi (0585), transferred last Friday from Satinu Markets Ltd. Celebrate, Imagi and Satinu are all part of what we call the "Chung Nam Network". The deal is subject to SFC approval for the change of substantial shareholders of the broker.
Concentration warning in Hon (8259)
| Allotment results
SFC, 25-Jan-2019
The top 11 holders (including the 75% controller) have 93.5%. Upon listing on 7-Nov-2018, which followed a public offer, the top 11 holders had 80.69% and the next 15 had 6.08%.
SFC, 25-Jan-2019
The top 11 holders (including the 75% controller) have 93.5%. Upon listing on 7-Nov-2018, which followed a public offer, the top 11 holders had 80.69% and the next 15 had 6.08%.
HKICPA fines Pan-China (H.K.) CPA Ltd HK$250k; Eugene Fung Pui Cheung & Gary Wong Ho Yuen $50k each
HKICPA, 25-Jan-2019
This relates to the 2010 audit of GT Group (0263) and the valuations of mining rights and goodwill. Citing 2 other cases for which the firm was fined in 2016 and 2017, the Committee increases the fine, but we note that the audit and non-audit fees on this account for 2010 were HK$1.56m, so this is hardly a deterrent. The HKICPA is constrained by a maximum fine of $0.5m but didn't even use that.
HKICPA, 25-Jan-2019
This relates to the 2010 audit of GT Group (0263) and the valuations of mining rights and goodwill. Citing 2 other cases for which the firm was fined in 2016 and 2017, the Committee increases the fine, but we note that the audit and non-audit fees on this account for 2010 were HK$1.56m, so this is hardly a deterrent. The HKICPA is constrained by a maximum fine of $0.5m but didn't even use that.
Asset (Mis)management
Lion Rock Institute, 25-Jan-2019
Nick Sallnow-Smith hits the rusty HK Government nail on the head.
Lion Rock Institute, 25-Jan-2019
Nick Sallnow-Smith hits the rusty HK Government nail on the head.
Why stock-plunges happen so often in HK
Webb-site.com, 24-Jan-2019
We explain the 20-year history to a statutory loophole which keeps investors in the dark on share pledges.
Webb-site.com, 24-Jan-2019
We explain the 20-year history to a statutory loophole which keeps investors in the dark on share pledges.
Jiayuan (2768) Chairman should expect the SFC's call
Webb-site.com, 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.
Webb-site.com, 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.
Skyline Credit Ltd v Leung Hing Chung
HK Court of First Instance, 23-Jan-2019
A HK$1.8m loan is unenforceable, due to a classic arranger scam which extracted fees of $830k, leaving the interest rate on the net loan at well over the 60% p.a. legal limit. Deputy Judge William Wong SC writes, in relation to the law firm involved: "I am of the view that the irresistible inference is that KB Chau knew that the Plaintiff and Lamto were acting in concert. It appears to me that KB Chau did facilitate the collusion…I find the conduct of KB Chau merits investigation."
HK Court of First Instance, 23-Jan-2019
A HK$1.8m loan is unenforceable, due to a classic arranger scam which extracted fees of $830k, leaving the interest rate on the net loan at well over the 60% p.a. legal limit. Deputy Judge William Wong SC writes, in relation to the law firm involved: "I am of the view that the irresistible inference is that KB Chau knew that the Plaintiff and Lamto were acting in concert. It appears to me that KB Chau did facilitate the collusion…I find the conduct of KB Chau merits investigation."
China prosecutors order arrest of 4 ex-executives at Huarong for bribery
Reuters, 22-Jan-2019
Webb-site notes that 2 of them, Bai Tianhui and Guo Jintong, were successively chairmen at Asia Pacific Silk Road Investment Co Ltd (0767) between 7-Sep-2017 and 10-Jul-2018, with Guo taking over from Bai on 2-Feb-2018. The firm is a P2P lending business and is 55% owned by Huarong Financial Services Asset Management L.P., although there is a huge mandatory convertible note held by the person who sold that business to ASPR.
Reuters, 22-Jan-2019
Webb-site notes that 2 of them, Bai Tianhui and Guo Jintong, were successively chairmen at Asia Pacific Silk Road Investment Co Ltd (0767) between 7-Sep-2017 and 10-Jul-2018, with Guo taking over from Bai on 2-Feb-2018. The firm is a P2P lending business and is 55% owned by Huarong Financial Services Asset Management L.P., although there is a huge mandatory convertible note held by the person who sold that business to ASPR.
"Long Hair" v Commissioner of Correctional Services
| Justice is blind, except for haircuts
HK Court of Appeal, 22-Jan-2019
Mr Leung's application for leave to appeal to the CFA is dismissed. Mr Leung must now take a short-cut, so to speak, and go directly to the CFA, where more people in wigs may hear his plea that male and female prisoners should have the same rule on haircuts. Amazingly, neither side seems to have mentioned that the UK removed the different treatment by 1999, as we reported last year in "Justice is blind, except for haircuts".
HK Court of Appeal, 22-Jan-2019
Mr Leung's application for leave to appeal to the CFA is dismissed. Mr Leung must now take a short-cut, so to speak, and go directly to the CFA, where more people in wigs may hear his plea that male and female prisoners should have the same rule on haircuts. Amazingly, neither side seems to have mentioned that the UK removed the different treatment by 1999, as we reported last year in "Justice is blind, except for haircuts".
MMT sanctions former CEO of China AU (8176) and related persons for false trading
| 26 stocks not to own
SFC, 21-Jan-2019
Incidentally, the company is now known as SuperRobotics Ltd, a bubble stock featured in our "26 stocks not to own" article of 19-Oct-2018. It has fallen 28.6% since then, so far.
SFC, 21-Jan-2019
Incidentally, the company is now known as SuperRobotics Ltd, a bubble stock featured in our "26 stocks not to own" article of 19-Oct-2018. It has fallen 28.6% since then, so far.
Killik Explains: how to invest in equities the David Webb way
YouTube, 17-Jan-2019
Oh, so that's how it's done! Maybe we should try it.
YouTube, 17-Jan-2019
Oh, so that's how it's done! Maybe we should try it.
China First Capital (1269): part 2
Webb-site.com, 13-Jan-2019
We continue our investigation into the UK joint venture, following a "clarification" announcement late on Christmas Eve.
Webb-site.com, 13-Jan-2019
We continue our investigation into the UK joint venture, following a "clarification" announcement late on Christmas Eve.
Last chance to satirise the anthem
Webb-site.com, 10-Jan-2019
In case you've lost that lovin' feelin' for the Chinese markets.
Webb-site.com, 10-Jan-2019
In case you've lost that lovin' feelin' for the Chinese markets.
China Medical Technologies, Inc v the partners of KPMG HK
HK Court of First Instance, 9-Jan-2019
And the moral of the story is: if you don't want personal liability for the work of your partners, then don't practice as a partnership; incorporate.
HK Court of First Instance, 9-Jan-2019
And the moral of the story is: if you don't want personal liability for the work of your partners, then don't practice as a partnership; incorporate.
Our stories
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)
China First Capital (1269): part 2
We continue our investigation into the UK joint venture, following a "clarification" announcement late on Christmas Eve. (13-Jan-2019)
We continue our investigation into the UK joint venture, following a "clarification" announcement late on Christmas Eve. (13-Jan-2019)
Last chance to satirise the anthem
In case you've lost that lovin' feelin' for the Chinese markets. (10-Jan-2019)
In case you've lost that lovin' feelin' for the Chinese markets. (10-Jan-2019)
Brexit and customs from a HK perspective
Theresa May has pursued 2 conflicting objectives: leaving the customs union; and keeping the UK/EU customs border open. HK people are used to a customs boundary with the rest of China, with no impact on sovereignty. Similarly, Northern Ireland should choose between remaining in the EU customs union post-Brexit with a boundary down the Irish Sea, or leaving the EU customs union and having a hard border with the Republic of Ireland. Only then can the UK or GB have independence in trade negotiations with other countries and deliver a proper Brexit. (17-Dec-2018)
Theresa May has pursued 2 conflicting objectives: leaving the customs union; and keeping the UK/EU customs border open. HK people are used to a customs boundary with the rest of China, with no impact on sovereignty. Similarly, Northern Ireland should choose between remaining in the EU customs union post-Brexit with a boundary down the Irish Sea, or leaving the EU customs union and having a hard border with the Republic of Ireland. Only then can the UK or GB have independence in trade negotiations with other countries and deliver a proper Brexit. (17-Dec-2018)
China Huarong seeks erasure of Lai Xiaomin
You might want to hang on to a bit of corporate history. (22-Nov-2018)
You might want to hang on to a bit of corporate history. (22-Nov-2018)
Companies Registry illegally overcharged users HK$3.6bn
The CFA has ruled that Trading Funds must not seek distributable profit or pay "notional tax". Webb-site finds that the Companies Registry has overcharged users HK$3.6bn since 1998, making up to a 94% return on fixed assets against a target 5.7%. The illegal excess should now be returned by waiving fees, including scrapping the Great Paywall of HK on corporate information. It should not take another judicial review to do so. (19-Nov-2018)
The CFA has ruled that Trading Funds must not seek distributable profit or pay "notional tax". Webb-site finds that the Companies Registry has overcharged users HK$3.6bn since 1998, making up to a 94% return on fixed assets against a target 5.7%. The illegal excess should now be returned by waiving fees, including scrapping the Great Paywall of HK on corporate information. It should not take another judicial review to do so. (19-Nov-2018)
41 endangered stocks
If HKEX proceeds with an ill-conceived Listing Rule change, companies with disclaimed audit reports for 2019 will be suspended and likely delisted, victimising minority shareholders. We now list those with disclaimed audits up to 30-Jun-2018 which would be affected if the rule applied today. Make your submission to stop this nonsense! (17-Nov-2018)
If HKEX proceeds with an ill-conceived Listing Rule change, companies with disclaimed audit reports for 2019 will be suspended and likely delisted, victimising minority shareholders. We now list those with disclaimed audits up to 30-Jun-2018 which would be affected if the rule applied today. Make your submission to stop this nonsense! (17-Nov-2018)
Freedom and the future of China
This is the text of a High Table dinner speech delivered by Webb-site founder David Webb to the students of Chi Sun College, University of Hong Kong, this evening. Hyperlinks have been added. (30-Oct-2018)
This is the text of a High Table dinner speech delivered by Webb-site founder David Webb to the students of Chi Sun College, University of Hong Kong, this evening. Hyperlinks have been added. (30-Oct-2018)
A deeper dive into CMBC, CSPT and FWF
After raw-nerve responses from CMBC Capital (1141) and China Soft Power Technology (0139) to our Huarong-CMB network diagram, we zoom in on their network and also look at CMBC's exposure to the controller of 3 more listed companies. (21-Oct-2018)
After raw-nerve responses from CMBC Capital (1141) and China Soft Power Technology (0139) to our Huarong-CMB network diagram, we zoom in on their network and also look at CMBC's exposure to the controller of 3 more listed companies. (21-Oct-2018)
The Huarong-CMB network: 26 stocks not to own
In our first circuit diagram since the infamous Enigma Network, we examine the overlapping networks, bubbles and funding surrounding 26 HK-listed companies that your portfolio would probably do better without. (19-Oct-2018)
In our first circuit diagram since the infamous Enigma Network, we examine the overlapping networks, bubbles and funding surrounding 26 HK-listed companies that your portfolio would probably do better without. (19-Oct-2018)
Other news
SFC fines Guosen Securities (HK) HK$15.2m for breaches of AML requirements
SFC, 18-Feb-2019
The firm processed over 2200 suspicious third-party deposits (i.e. not made by clients but into their accounts) totalling over HK$2.3bn in 14 months up to Dec-2015.
SFC, 18-Feb-2019
The firm processed over 2200 suspicious third-party deposits (i.e. not made by clients but into their accounts) totalling over HK$2.3bn in 14 months up to Dec-2015.
Central Wealth (0139) raises CEO's salary by 400%
Company announcement, 15-Feb-2019
The boost to HK$6m is "to provide incentive…to strive for the continual development and expansion of the Group" - but the pay is not performance-linked. Central Wealth is part of the Huarong-CMB network we warned readers about on 19-Oct-2018. The stock has dropped 64.1% since Mr Xu Ke joined the board as CEO on 27-Feb-2018.
Company announcement, 15-Feb-2019
The boost to HK$6m is "to provide incentive…to strive for the continual development and expansion of the Group" - but the pay is not performance-linked. Central Wealth is part of the Huarong-CMB network we warned readers about on 19-Oct-2018. The stock has dropped 64.1% since Mr Xu Ke joined the board as CEO on 27-Feb-2018.
HKICPA bans Henry Mok Wing Kai, ex-Financial Controller of Greencool, for 6 months
HKICPA, 14-Feb-2019
HKICPA, 14-Feb-2019
'Excellent Wife' cooking class offered by Hong Kong gas supplier
Bloomberg, 4-Feb-2019
As first reported by Webb-site.com. We're looking forward to the "Excellent Husband" how-to-repair-a-gas-stove course.
Bloomberg, 4-Feb-2019
As first reported by Webb-site.com. We're looking forward to the "Excellent Husband" how-to-repair-a-gas-stove course.
SFC revokes licence of W. Falcon Asset Management (Asia) Ltd
SFC, 4-Feb-2019
For window-dressing its month-end liquid capital with dud cheques.
SFC, 4-Feb-2019
For window-dressing its month-end liquid capital with dud cheques.
Ravi Gidumal & Shalini Mahtani v Dr Richard Chiu Wing & Matilda International Hospital
HK Court of First Instance, 31-Jan-2019
HK Court of First Instance, 31-Jan-2019
Chairman Yao Jianhui & others pledge 12.14% of China Goldjoy (1282) to Huarong Inv (2277)
Disclosure of interest, 29-Jan-2019
The shares were pledged by Mr Yao's wholly-owned Tinmark Development Ltd to Chelsea Manifest Fund, wholly-owned by Huarong Inv. Of the 3.14bn shares, 1.97bn were from Tinmark. The source of the others is unclear.
Disclosure of interest, 29-Jan-2019
The shares were pledged by Mr Yao's wholly-owned Tinmark Development Ltd to Chelsea Manifest Fund, wholly-owned by Huarong Inv. Of the 3.14bn shares, 1.97bn were from Tinmark. The source of the others is unclear.
Celebrate (8212) to buy Hope Securities Ltd from David Ki
| CCASS transfer
Company announcement, 29-Jan-2019
The broker, licensed on 9-Apr-2018, has only 2 licensed staff and only one stock in its CCASS account, Imagi (0585), transferred last Friday from Satinu Markets Ltd. Celebrate, Imagi and Satinu are all part of what we call the "Chung Nam Network". The deal is subject to SFC approval for the change of substantial shareholders of the broker.
Company announcement, 29-Jan-2019
The broker, licensed on 9-Apr-2018, has only 2 licensed staff and only one stock in its CCASS account, Imagi (0585), transferred last Friday from Satinu Markets Ltd. Celebrate, Imagi and Satinu are all part of what we call the "Chung Nam Network". The deal is subject to SFC approval for the change of substantial shareholders of the broker.
Concentration warning in Hon (8259)
| Allotment results
SFC, 25-Jan-2019
The top 11 holders (including the 75% controller) have 93.5%. Upon listing on 7-Nov-2018, which followed a public offer, the top 11 holders had 80.69% and the next 15 had 6.08%.
SFC, 25-Jan-2019
The top 11 holders (including the 75% controller) have 93.5%. Upon listing on 7-Nov-2018, which followed a public offer, the top 11 holders had 80.69% and the next 15 had 6.08%.
HKICPA fines Pan-China (H.K.) CPA Ltd HK$250k; Eugene Fung Pui Cheung & Gary Wong Ho Yuen $50k each
HKICPA, 25-Jan-2019
This relates to the 2010 audit of GT Group (0263) and the valuations of mining rights and goodwill. Citing 2 other cases for which the firm was fined in 2016 and 2017, the Committee increases the fine, but we note that the audit and non-audit fees on this account for 2010 were HK$1.56m, so this is hardly a deterrent. The HKICPA is constrained by a maximum fine of $0.5m but didn't even use that.
HKICPA, 25-Jan-2019
This relates to the 2010 audit of GT Group (0263) and the valuations of mining rights and goodwill. Citing 2 other cases for which the firm was fined in 2016 and 2017, the Committee increases the fine, but we note that the audit and non-audit fees on this account for 2010 were HK$1.56m, so this is hardly a deterrent. The HKICPA is constrained by a maximum fine of $0.5m but didn't even use that.
Asset (Mis)management
Lion Rock Institute, 25-Jan-2019
Nick Sallnow-Smith hits the rusty HK Government nail on the head.
Lion Rock Institute, 25-Jan-2019
Nick Sallnow-Smith hits the rusty HK Government nail on the head.
Skyline Credit Ltd v Leung Hing Chung
HK Court of First Instance, 23-Jan-2019
A HK$1.8m loan is unenforceable, due to a classic arranger scam which extracted fees of $830k, leaving the interest rate on the net loan at well over the 60% p.a. legal limit. Deputy Judge William Wong SC writes, in relation to the law firm involved: "I am of the view that the irresistible inference is that KB Chau knew that the Plaintiff and Lamto were acting in concert. It appears to me that KB Chau did facilitate the collusion…I find the conduct of KB Chau merits investigation."
HK Court of First Instance, 23-Jan-2019
A HK$1.8m loan is unenforceable, due to a classic arranger scam which extracted fees of $830k, leaving the interest rate on the net loan at well over the 60% p.a. legal limit. Deputy Judge William Wong SC writes, in relation to the law firm involved: "I am of the view that the irresistible inference is that KB Chau knew that the Plaintiff and Lamto were acting in concert. It appears to me that KB Chau did facilitate the collusion…I find the conduct of KB Chau merits investigation."
China prosecutors order arrest of 4 ex-executives at Huarong for bribery
Reuters, 22-Jan-2019
Webb-site notes that 2 of them, Bai Tianhui and Guo Jintong, were successively chairmen at Asia Pacific Silk Road Investment Co Ltd (0767) between 7-Sep-2017 and 10-Jul-2018, with Guo taking over from Bai on 2-Feb-2018. The firm is a P2P lending business and is 55% owned by Huarong Financial Services Asset Management L.P., although there is a huge mandatory convertible note held by the person who sold that business to ASPR.
Reuters, 22-Jan-2019
Webb-site notes that 2 of them, Bai Tianhui and Guo Jintong, were successively chairmen at Asia Pacific Silk Road Investment Co Ltd (0767) between 7-Sep-2017 and 10-Jul-2018, with Guo taking over from Bai on 2-Feb-2018. The firm is a P2P lending business and is 55% owned by Huarong Financial Services Asset Management L.P., although there is a huge mandatory convertible note held by the person who sold that business to ASPR.
"Long Hair" v Commissioner of Correctional Services
| Justice is blind, except for haircuts
HK Court of Appeal, 22-Jan-2019
Mr Leung's application for leave to appeal to the CFA is dismissed. Mr Leung must now take a short-cut, so to speak, and go directly to the CFA, where more people in wigs may hear his plea that male and female prisoners should have the same rule on haircuts. Amazingly, neither side seems to have mentioned that the UK removed the different treatment by 1999, as we reported last year in "Justice is blind, except for haircuts".
HK Court of Appeal, 22-Jan-2019
Mr Leung's application for leave to appeal to the CFA is dismissed. Mr Leung must now take a short-cut, so to speak, and go directly to the CFA, where more people in wigs may hear his plea that male and female prisoners should have the same rule on haircuts. Amazingly, neither side seems to have mentioned that the UK removed the different treatment by 1999, as we reported last year in "Justice is blind, except for haircuts".
MMT sanctions former CEO of China AU (8176) and related persons for false trading
| 26 stocks not to own
SFC, 21-Jan-2019
Incidentally, the company is now known as SuperRobotics Ltd, a bubble stock featured in our "26 stocks not to own" article of 19-Oct-2018. It has fallen 28.6% since then, so far.
SFC, 21-Jan-2019
Incidentally, the company is now known as SuperRobotics Ltd, a bubble stock featured in our "26 stocks not to own" article of 19-Oct-2018. It has fallen 28.6% since then, so far.
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.
Webb-chips: current disclosed holdings
Today's big birthdays, 20 February
more from Webb-site Who's Who
more from Webb-site Who's Who
Sign up for our free newsletter
Recommend Webb-site to a friend
Copyright & disclaimer, Privacy policy