Yung, Larry Chi Kin 榮智健

MMT doesn't find market misconduct in CITIC (0267)'s 2008 circular
SFC, 10-Apr-2017
The MMT says the SFC failed to show that the statement of "no material adverse change" (MAC) caused the price to remain stable, and it is irrelevant that if the huge FX loss had been disclosed, it would have crashed the price. The SFC in our view erred in focussing on the "financial position" (the balance sheet) and ignoring the "trading position" (the income statement). The MMT says there hadn't been a MAC in the financial position as the loss, while price-sensitive, was bearable. That's wrong in our view because it takes a creditor's view rather than a shareholder's view of what is materially adverse, and the Listing Rules were written primarily for equities. The MMT didn't examine whether there was a MAC in the trading position, because the SFC didn't ask them to. Time has moved on - it is now civil Market Misconduct to fail to disclose price-sensitive Inside Information, but in 2008 it was just a breach of the Listing Rules.
MMT sets date for CITIC hearing, 11 months from now.
SFC, 15-Dec-2014
LCQ: Legal proceedings related to CITIC (0267)
HK Government, 15-Oct-2014
Govt says police investigations into CITIC are ongoing. Legal battle over whether documents and disks seized by police are subject to legal professional privilege won't be heard in Court of Appeal until May-2015. Thanks to legislator James To Kun Sun for raising this again.
CITIC (0267): SFC complaint filed with MMT
Market Misconduct Tribunal, 11-Sep-2014
SFC launches proceedings against CITIC (0267), its former Chairman and executive directors
SFC, 11-Sep-2014
The SFC completed its investigation by 2010, but with the 6-year limit for civil action expiring tomorrow, it probably could not wait any longer for the DoJ to prosecute, so it is taking the civil route via the MMT, and more importantly for investors, it is seeking restoration for those who bought the shares during the period between the alleged false statement on 12-Sep-2008 and the revelation of the FX losses on 20-Oct-2008. Sadly there appears to be no remedy for those who already held the shares on 12-Sep-2008 and relied on the statement in continuing to hold them.
Larry Yung's secretary gets suspended 4-week sentence & HK$20k fine
ICAC, 13-May-2013
Unlike its 16-Apr announcement (where we added his name), this time the ICAC names her boss.
Company director in court for alleged breach of POBO over false statements
ICAC, 16-Apr-2013
Interestingly, the accused, Agnes Tai Wai Kuen, is or was a director of Global Electronics, S.A., a private Panama company of which the other 2 directors are/were Larry Yung Chi-kin, former Chairman of CITIC Pacific (0267) and his daughter Frances Yung Ming-fong. Agnes Tai was Mr Yung's secretary according to a Bloomberg article in 2005. She and Mr Yung are/were the only directors of another Panama company, Worldwide Investments Holding, S.A..
Progress of investigations into CITIC Pacific
HK Government, 10-Nov-2010
Investigations into CITIC Pacific
HK Government, 23-Jun-2010
Comment: the longer we wait for action, the more it seems like the current Secretary for Justice is having a "Sally Aw" moment.
Authorities seek answers from CITIC Pacific
HK Standard, 21-Apr-2010
We suspect the company is running a defence of "our lawyer said we didn't have to disclose it", and so the Department of Justice wants to see the advice. We don't see how that makes a "no material change" statement true, and we don't think obtaining bad advice is an excuse for breaking the law, if they did. Any attempt to claim that excuse is good grounds for voiding legal professional privilege, in our view.
Imagi bubble
We issue a bubble warning on Imagi (0585), up 616% in 4 days on turnover of 185% of the company. The confusing timetable, with a 10:1 consolidation yet to come, has likely contributed to more chaos than we have seen since Asian Citrus. The market price implies a valuation of 33.2 times book value, or a premium of HK$17.3bn (US$2.23bn). We think a discount would be more appropriate, for the characters involved. (14-Apr-2010)
CITIC Pacific woes continue
We look further into the scandal enveloping CITIC Pacific, including a possibly false and misleading statement for which the Company and directors could be prosecuted, and also at the grant of an enormous share option over existing shares by PRC Government-owned CITIC HK to Mr Yung, which appears to have been prematurely cancelled in Jul-08. (22-Oct-2008)

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