News
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.
SFC fines FWD Life Insurance HK$2.4m for understaffing
SFC, 8-Jan-2019
Perhaps FWD stands for "Fund Without Drivers".
SFC, 8-Jan-2019
Perhaps FWD stands for "Fund Without Drivers".
SFC prohibits brokers' client from placing orders for derivative warrants
SFC, 4-Jan-2019
The SFC sketches allegations that a trader bought warrants, then bid up the underlying stock, then sold warrants, then sold the stock, and somehow made a profit repeating this pattern despite the often-wide spreads in DWs. In our view a binding order can never be false, and the SFC should not encourage the fallacy that bids and offers in the market should provide a predictive price signal to investors. They are no more than bids and offers capable of being executed. The investigation continues - but aren't there better things on which to spend limited enforcement resources?
SFC, 4-Jan-2019
The SFC sketches allegations that a trader bought warrants, then bid up the underlying stock, then sold warrants, then sold the stock, and somehow made a profit repeating this pattern despite the often-wide spreads in DWs. In our view a binding order can never be false, and the SFC should not encourage the fallacy that bids and offers in the market should provide a predictive price signal to investors. They are no more than bids and offers capable of being executed. The investigation continues - but aren't there better things on which to spend limited enforcement resources?
SFC fines Ardon Maroon Fund Management (HK) Ltd HK$800k for wash trade
SFC, 27-Dec-2018
The SFC says that but for the firm's financial position, the fine would have been heavier. So they weren't too hard on Ardon. The firm is now named China Silver Asset Management (HK) Ltd.
SFC, 27-Dec-2018
The SFC says that but for the firm's financial position, the fine would have been heavier. So they weren't too hard on Ardon. The firm is now named China Silver Asset Management (HK) Ltd.
Court orders boiler room fraudsters to compensate investors
SFC, 24-Dec-2018
It doesn't actually know who the human fraudsters are, but it's got their corporate bank accounts, containing HK$600k, which will now be distributed to 14 victims pro rata to the amounts they sent in.
SFC, 24-Dec-2018
It doesn't actually know who the human fraudsters are, but it's got their corporate bank accounts, containing HK$600k, which will now be distributed to 14 victims pro rata to the amounts they sent in.
Kenneth Yeung Bing Kwong v Mount Oscar Ltd
| California action
HK Court of First Instance, 24-Dec-2018
War has apparently broken out in the Yeung family, which controls jewellers King Fook (0280) via Yeung Chi Shing Estates Ltd. Kenneth Yeung unsuccessfully challenges his removal as director of a subsidiary of YCSEL, Mount Oscar Ltd. He has launched a separate action in California against various relatives and companies.
HK Court of First Instance, 24-Dec-2018
War has apparently broken out in the Yeung family, which controls jewellers King Fook (0280) via Yeung Chi Shing Estates Ltd. Kenneth Yeung unsuccessfully challenges his removal as director of a subsidiary of YCSEL, Mount Oscar Ltd. He has launched a separate action in California against various relatives and companies.
CST (0985) lends HK$200m to someone
Company announcement, 21-Dec-2018
It fails to say whom. The loan amount is 22.5% of CST's market capitalisation.
Company announcement, 21-Dec-2018
It fails to say whom. The loan amount is 22.5% of CST's market capitalisation.
Trio charged with fraud and forgery over HOS flat purchase
ICAC, 20-Dec-2018
A married couple allegedly understated their combined income by using a fake job for the wife from the 3rd defendant, thereby qualifying for the Government's discounted home ownership scheme.
ICAC, 20-Dec-2018
A married couple allegedly understated their combined income by using a fake job for the wife from the 3rd defendant, thereby qualifying for the Government's discounted home ownership scheme.
Man charged with HK$680k conspiracy to bribe HKJC members
ICAC, 19-Dec-2018
Comment: It's been a while since the last one, but with only 200 Voting Members able to nominate new members of the Club, and the incorrect presumption of respectability that membership buys, the system invites corruption. The Club should just sell the available memberships by regular sealed tender and stop trying to act as arbiters of probity.
ICAC, 19-Dec-2018
Comment: It's been a while since the last one, but with only 200 Voting Members able to nominate new members of the Club, and the incorrect presumption of respectability that membership buys, the system invites corruption. The Club should just sell the available memberships by regular sealed tender and stop trying to act as arbiters of probity.
Director of property agencies charged with HK$15m fraud in 2 deals
| HCA1926/2015
ICAC, 19-Dec-2018
More details of the case can be found in a high court ruling in Thompson Law Ka Yan v Ho Kang Wing, HCA1926/2015, dated 5-Feb-2016.
ICAC, 19-Dec-2018
More details of the case can be found in a high court ruling in Thompson Law Ka Yan v Ho Kang Wing, HCA1926/2015, dated 5-Feb-2016.
Celebrate (8212): ED Philip Suen Yick Lun "vehemently denied" SFC allegations against him
Company announcement, 19-Dec-2018
Company announcement, 19-Dec-2018
SFC takes CMBC Capital (1141) and 6 former directors to MMT
| The bubbles in CNN
SFC, 18-Dec-2018
This alleges late disclosure of market gains in its securities portfolio in 2014, including shares of Icube (0139), Heritage (0412) and Rising Development (1004), all of which have since been renamed. All 4 companies were then in what we call the "Chung Nam Network". On 8-Jan-2015, we warned the market about bubbles in 2 of them.
SFC, 18-Dec-2018
This alleges late disclosure of market gains in its securities portfolio in 2014, including shares of Icube (0139), Heritage (0412) and Rising Development (1004), all of which have since been renamed. All 4 companies were then in what we call the "Chung Nam Network". On 8-Jan-2015, we warned the market about bubbles in 2 of them.
Brexit and customs from a HK perspective
Webb-site.com, 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.
Webb-site.com, 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.
Mainlander charged with offering CCB (Asia) manager HK$500-1500 bribe
ICAC, 13-Dec-2018
One country, two systems.
ICAC, 13-Dec-2018
One country, two systems.
Statement on Leung Chun Ying, Holden Chow Ho Ding & UGL
ICAC, 12-Dec-2018
Apparently the ICAC Operations Review Committee was able to receive a report from the ICAC and legal advice from the DoJ and endorse it all within one day.
ICAC, 12-Dec-2018
Apparently the ICAC Operations Review Committee was able to receive a report from the ICAC and legal advice from the DoJ and endorse it all within one day.
Criticism of Chen Xing Development (2286) and censure of 4 EDs
SEHK, 12-Dec-2018
A year after listing, the Shanxi property developer started sinking cash into "wealth-management products" without disclosure or shareholders' approval.
SEHK, 12-Dec-2018
A year after listing, the Shanxi property developer started sinking cash into "wealth-management products" without disclosure or shareholders' approval.
China Huarong (2799): Party like it's 1949
Company announcement, 10-Dec-2018
"The Party Committee shall play the core leadership role...The chairman of the board of directors shall concurrently serve as the secretary of the Party Committee". Good to see the ongoing deepening of market reforms and opening up!
Company announcement, 10-Dec-2018
"The Party Committee shall play the core leadership role...The chairman of the board of directors shall concurrently serve as the secretary of the Party Committee". Good to see the ongoing deepening of market reforms and opening up!
SFC suspends Ms Chan Ho Wai & Mr Lam Wai Kit, ROs of FT Securities, for 9 months
| FT Securities research
SFC, 10-Dec-2018
This relates to 3 equity research reports issued between Jul-2012 and Apr-2013. We don't yet know for sure what the subject(s) of those reports were, as FT Securities is appealing against disciplinary action. However, we see only 3 research reports on the Financial Technicians web site and the dates match, of which 2 are on Neptune Group (now Rich Goldman, 0070) and 1 on Chinese Food & Beverage (8272).
SFC, 10-Dec-2018
This relates to 3 equity research reports issued between Jul-2012 and Apr-2013. We don't yet know for sure what the subject(s) of those reports were, as FT Securities is appealing against disciplinary action. However, we see only 3 research reports on the Financial Technicians web site and the dates match, of which 2 are on Neptune Group (now Rich Goldman, 0070) and 1 on Chinese Food & Beverage (8272).
HKICPA fines Victor Robert Lew, Keith So Kwok Keung & East Asia Sentinel Ltd HK$55k jointly
HKICPA, 10-Dec-2018
It is over 9 years since the audit report, and the fine is far less than the $221k audit fee on the company, China Minsheng DIT Group Ltd (0726). It is Mr So's and the firm's third fine in 4 years.
HKICPA, 10-Dec-2018
It is over 9 years since the audit report, and the fine is far less than the $221k audit fee on the company, China Minsheng DIT Group Ltd (0726). It is Mr So's and the firm's third fine in 4 years.
Our stories
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)
Huarong and China Singyes Solar Technologies (0750)
CSST, now suspended pending disclosure of its financial position, has failed to disclose in its reports the interest of Huarong Int Fin (0993), which claims to have a 15.09% interest, including 8.04% purchased from an unknown vendor in Dec-2017 and security over a further 7.05% pledged to it, presumably to secure a put option that it claims to have been granted. By whom? (18-Oct-2018)
CSST, now suspended pending disclosure of its financial position, has failed to disclose in its reports the interest of Huarong Int Fin (0993), which claims to have a 15.09% interest, including 8.04% purchased from an unknown vendor in Dec-2017 and security over a further 7.05% pledged to it, presumably to secure a put option that it claims to have been granted. By whom? (18-Oct-2018)
The Princeton economist and a plot in Sheung Wan
A tiny plot of prime HK land left behind in a company dissolved in 1972 is now a potential windfall in a redevelopment of its surroundings. For 54 years, Professor Gregory Chow never knew he had a stake in it. (8-Oct-2018)
A tiny plot of prime HK land left behind in a company dissolved in 1972 is now a potential windfall in a redevelopment of its surroundings. For 54 years, Professor Gregory Chow never knew he had a stake in it. (8-Oct-2018)
China First Capital (1269) and a questionable joint venture
Webb-site finds serious problems with CFC's statements about a GBP60m UK start-up joint venture with a BVI company, the owner of which is not disclosed, which has only partly paid for its share of the JV. (7-Oct-2018)
Webb-site finds serious problems with CFC's statements about a GBP60m UK start-up joint venture with a BVI company, the owner of which is not disclosed, which has only partly paid for its share of the JV. (7-Oct-2018)
Huarong and the Chung Nam Network
Webb-site can reveal another SFC investigation underway involving dealings in Pak Wing (8316). The manipulation of this GEM bubble reveals another connection between China Huarong (2799) and what we call the "Chung Nam Network". The more we scrutinise Huarong, the worse it looks. Will the State end up bailing out the bailer? (3-Oct-2018)
Webb-site can reveal another SFC investigation underway involving dealings in Pak Wing (8316). The manipulation of this GEM bubble reveals another connection between China Huarong (2799) and what we call the "Chung Nam Network". The more we scrutinise Huarong, the worse it looks. Will the State end up bailing out the bailer? (3-Oct-2018)
Breaking: SFC freezes up to HK$10.17bn of assets in 3 brokers
Webb-site has deduced that these are assets of Mr Yang Zhihui, missing Chairman and majority shareholder of Landing (0582), and that he is reasonably suspected of fraud causing losses of HK$10.17bn to China Huarong (2799), the ex-Chairman of which is under a corruption investigation in China. We also turn the spotlight on China Goldjoy (1282) which was an enthusiastic buyer of Landing at prices far higher than its Chairman paid beforehand. (1-Oct-2018)
Webb-site has deduced that these are assets of Mr Yang Zhihui, missing Chairman and majority shareholder of Landing (0582), and that he is reasonably suspected of fraud causing losses of HK$10.17bn to China Huarong (2799), the ex-Chairman of which is under a corruption investigation in China. We also turn the spotlight on China Goldjoy (1282) which was an enthusiastic buyer of Landing at prices far higher than its Chairman paid beforehand. (1-Oct-2018)
Other news
SFC fines FWD Life Insurance HK$2.4m for understaffing
SFC, 8-Jan-2019
Perhaps FWD stands for "Fund Without Drivers".
SFC, 8-Jan-2019
Perhaps FWD stands for "Fund Without Drivers".
SFC prohibits brokers' client from placing orders for derivative warrants
SFC, 4-Jan-2019
The SFC sketches allegations that a trader bought warrants, then bid up the underlying stock, then sold warrants, then sold the stock, and somehow made a profit repeating this pattern despite the often-wide spreads in DWs. In our view a binding order can never be false, and the SFC should not encourage the fallacy that bids and offers in the market should provide a predictive price signal to investors. They are no more than bids and offers capable of being executed. The investigation continues - but aren't there better things on which to spend limited enforcement resources?
SFC, 4-Jan-2019
The SFC sketches allegations that a trader bought warrants, then bid up the underlying stock, then sold warrants, then sold the stock, and somehow made a profit repeating this pattern despite the often-wide spreads in DWs. In our view a binding order can never be false, and the SFC should not encourage the fallacy that bids and offers in the market should provide a predictive price signal to investors. They are no more than bids and offers capable of being executed. The investigation continues - but aren't there better things on which to spend limited enforcement resources?
SFC fines Ardon Maroon Fund Management (HK) Ltd HK$800k for wash trade
SFC, 27-Dec-2018
The SFC says that but for the firm's financial position, the fine would have been heavier. So they weren't too hard on Ardon. The firm is now named China Silver Asset Management (HK) Ltd.
SFC, 27-Dec-2018
The SFC says that but for the firm's financial position, the fine would have been heavier. So they weren't too hard on Ardon. The firm is now named China Silver Asset Management (HK) Ltd.
Court orders boiler room fraudsters to compensate investors
SFC, 24-Dec-2018
It doesn't actually know who the human fraudsters are, but it's got their corporate bank accounts, containing HK$600k, which will now be distributed to 14 victims pro rata to the amounts they sent in.
SFC, 24-Dec-2018
It doesn't actually know who the human fraudsters are, but it's got their corporate bank accounts, containing HK$600k, which will now be distributed to 14 victims pro rata to the amounts they sent in.
Kenneth Yeung Bing Kwong v Mount Oscar Ltd
| California action
HK Court of First Instance, 24-Dec-2018
War has apparently broken out in the Yeung family, which controls jewellers King Fook (0280) via Yeung Chi Shing Estates Ltd. Kenneth Yeung unsuccessfully challenges his removal as director of a subsidiary of YCSEL, Mount Oscar Ltd. He has launched a separate action in California against various relatives and companies.
HK Court of First Instance, 24-Dec-2018
War has apparently broken out in the Yeung family, which controls jewellers King Fook (0280) via Yeung Chi Shing Estates Ltd. Kenneth Yeung unsuccessfully challenges his removal as director of a subsidiary of YCSEL, Mount Oscar Ltd. He has launched a separate action in California against various relatives and companies.
CST (0985) lends HK$200m to someone
Company announcement, 21-Dec-2018
It fails to say whom. The loan amount is 22.5% of CST's market capitalisation.
Company announcement, 21-Dec-2018
It fails to say whom. The loan amount is 22.5% of CST's market capitalisation.
Trio charged with fraud and forgery over HOS flat purchase
ICAC, 20-Dec-2018
A married couple allegedly understated their combined income by using a fake job for the wife from the 3rd defendant, thereby qualifying for the Government's discounted home ownership scheme.
ICAC, 20-Dec-2018
A married couple allegedly understated their combined income by using a fake job for the wife from the 3rd defendant, thereby qualifying for the Government's discounted home ownership scheme.
Man charged with HK$680k conspiracy to bribe HKJC members
ICAC, 19-Dec-2018
Comment: It's been a while since the last one, but with only 200 Voting Members able to nominate new members of the Club, and the incorrect presumption of respectability that membership buys, the system invites corruption. The Club should just sell the available memberships by regular sealed tender and stop trying to act as arbiters of probity.
ICAC, 19-Dec-2018
Comment: It's been a while since the last one, but with only 200 Voting Members able to nominate new members of the Club, and the incorrect presumption of respectability that membership buys, the system invites corruption. The Club should just sell the available memberships by regular sealed tender and stop trying to act as arbiters of probity.
Director of property agencies charged with HK$15m fraud in 2 deals
| HCA1926/2015
ICAC, 19-Dec-2018
More details of the case can be found in a high court ruling in Thompson Law Ka Yan v Ho Kang Wing, HCA1926/2015, dated 5-Feb-2016.
ICAC, 19-Dec-2018
More details of the case can be found in a high court ruling in Thompson Law Ka Yan v Ho Kang Wing, HCA1926/2015, dated 5-Feb-2016.
Celebrate (8212): ED Philip Suen Yick Lun "vehemently denied" SFC allegations against him
Company announcement, 19-Dec-2018
Company announcement, 19-Dec-2018
SFC takes CMBC Capital (1141) and 6 former directors to MMT
| The bubbles in CNN
SFC, 18-Dec-2018
This alleges late disclosure of market gains in its securities portfolio in 2014, including shares of Icube (0139), Heritage (0412) and Rising Development (1004), all of which have since been renamed. All 4 companies were then in what we call the "Chung Nam Network". On 8-Jan-2015, we warned the market about bubbles in 2 of them.
SFC, 18-Dec-2018
This alleges late disclosure of market gains in its securities portfolio in 2014, including shares of Icube (0139), Heritage (0412) and Rising Development (1004), all of which have since been renamed. All 4 companies were then in what we call the "Chung Nam Network". On 8-Jan-2015, we warned the market about bubbles in 2 of them.
Mainlander charged with offering CCB (Asia) manager HK$500-1500 bribe
ICAC, 13-Dec-2018
One country, two systems.
ICAC, 13-Dec-2018
One country, two systems.
Previously on Webb-site.com
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Check out our full list of articles in the archive, since our launch in 1998.
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