Articles: Bubble/concentration warnings
Concentration warning in Pak Tak (2668)
SFC, 16-Sep-2024
The top 26 holders have 95.35% at 4-Sep-2024.
SFC, 16-Sep-2024
The top 26 holders have 95.35% at 4-Sep-2024.
Concentration warning in Sanergy (2459)
SFC, 2-Sep-2024
The top 26 holders plus the shares not on the HK register amount to 90.20%. The stock was added to the MSCI Small-Cap Index on Friday night (30-Aug) and is due to enter the Hang Seng Composite Index on 9-Sep.
SFC, 2-Sep-2024
The top 26 holders plus the shares not on the HK register amount to 90.20%. The stock was added to the MSCI Small-Cap Index on Friday night (30-Aug) and is due to enter the Hang Seng Composite Index on 9-Sep.
Concentration warning in GoFintech Innovation (0290)
Company announcement, 23-Aug-2024
The top 23 holders have 90.55% of the stock.
Company announcement, 23-Aug-2024
The top 23 holders have 90.55% of the stock.
Concentration warning in Migao (9879)
SFC, 2-Aug-2024
Listed on 21-Mar-2024. The top 14 holders have 99.04% of the stock.
SFC, 2-Aug-2024
Listed on 21-Mar-2024. The top 14 holders have 99.04% of the stock.
Concentration warning in Changjiu (6959)
SFC, 19-Jun-2024
The top 11 holders have 98.31% of the stock.
SFC, 19-Jun-2024
The top 11 holders have 98.31% of the stock.
Webb-site bubble warning: Qi-House (8395)
(29-Oct-2023)
(29-Oct-2023)
Censure of C-Link Squared (1463) and 2 founder-EDs
SEHK, 5-Oct-2023
Within days of the IPO, an amount equal to 50.8% of the net proceeds was paid out as non-refundable advance "service fees". We note that the market cap at the IPO price was HK$504m, just above the minimum $500m. We've seen that pattern several times and in some cases the fees may be a way to indirectly rebate the IPO proceeds to get listings done at an artificially high price. In this case, though, the stock took off and is now up over 6x since IPO, in a bubble in our view. Both the co-founders have resigned and sold their shares.
SEHK, 5-Oct-2023
Within days of the IPO, an amount equal to 50.8% of the net proceeds was paid out as non-refundable advance "service fees". We note that the market cap at the IPO price was HK$504m, just above the minimum $500m. We've seen that pattern several times and in some cases the fees may be a way to indirectly rebate the IPO proceeds to get listings done at an artificially high price. In this case, though, the stock took off and is now up over 6x since IPO, in a bubble in our view. Both the co-founders have resigned and sold their shares.
SFC and ICAC joint operation against suspected market manipulation syndicate
SFC, 29-Aug-2023
Involving ramps in the shares of 2 unnamed listed companies. We can tell you that one is Alliance International Education Leasing (1563), where the bubble has already burst, and the other is probably MOG Digitech (1942), which is still in a bubble. The SFC has issued Restriction Notices issued to 6 brokers to freeze certain client accounts.
SFC, 29-Aug-2023
Involving ramps in the shares of 2 unnamed listed companies. We can tell you that one is Alliance International Education Leasing (1563), where the bubble has already burst, and the other is probably MOG Digitech (1942), which is still in a bubble. The SFC has issued Restriction Notices issued to 6 brokers to freeze certain client accounts.
Concentration warning in Infinity Logistics and Transport Ventures (1442)
SFC, 30-Nov-2021
The top 25 holders have 94.06% as at 15-Nov-2021.
SFC, 30-Nov-2021
The top 25 holders have 94.06% as at 15-Nov-2021.
Concentration warning in Morimatsu (2155)
SFC, 29-Nov-2021
The top 18 holders have 93.43% as at 11-Nov-2021. Less than 5 months after the IPO, the stock price is 431% above the issue price.
SFC, 29-Nov-2021
The top 18 holders have 93.43% as at 11-Nov-2021. Less than 5 months after the IPO, the stock price is 431% above the issue price.
3 accountants among 9 arrested by ICAC for alleged bribery over listing of Macao construction firm
| FRC announcement
ICAC, 22-Nov-2021
Webb-site Who's Who indicates that the firm is almost certainly Huarchi Global (2296), which shares a HK office with its auditor Wellink CPA Ltd and is chaired by Lou Cheok Meng. The Accountants' Report in the prospectus was signed by Opal Chan Yan Ting, MD of Wellink. The stock was suspended last Friday and looks like a bubble to us, on 8.6x NAV and a P/E of 109. Wong Yat Chung was CFO from 2018 until the end of 2020 when he was replaced by Chan Wai Lun. The listing was sponsored by Ample Capital Ltd. Wellink is currently the auditor of 3 other listed companies.
ICAC, 22-Nov-2021
Webb-site Who's Who indicates that the firm is almost certainly Huarchi Global (2296), which shares a HK office with its auditor Wellink CPA Ltd and is chaired by Lou Cheok Meng. The Accountants' Report in the prospectus was signed by Opal Chan Yan Ting, MD of Wellink. The stock was suspended last Friday and looks like a bubble to us, on 8.6x NAV and a P/E of 109. Wong Yat Chung was CFO from 2018 until the end of 2020 when he was replaced by Chan Wai Lun. The listing was sponsored by Ample Capital Ltd. Wellink is currently the auditor of 3 other listed companies.
Concentration warning in Jinhai (2225)
SFC, 29-Jul-2021
The top 20 holders had 95.14% as at 19-Jul-2021.
SFC, 29-Jul-2021
The top 20 holders had 95.14% as at 19-Jul-2021.
Concentration warning in JLogo (8527)
SFC, 26-Jul-2021
The top 20 holders had 93.14% as at 14-Jul-2021.
SFC, 26-Jul-2021
The top 20 holders had 93.14% as at 14-Jul-2021.
Concentration warning in Strawbear Entertainment (2125)
SFC, 6-May-2021
The top 25 holders have 98.20%.
SFC, 6-May-2021
The top 25 holders have 98.20%.
Concentration warning in Goldstone Investment (0901)
SFC, 13-Apr-2021
The top 22 holders have 90.49%.
SFC, 13-Apr-2021
The top 22 holders have 90.49%.
Concentration warning in Pacific Millennium Packaging (1820)
SFC, 13-Apr-2021
The top 25 holders have 96.6%.
SFC, 13-Apr-2021
The top 25 holders have 96.6%.
Concentration warning in Maxicity (8216)
SFC, 29-Mar-2021
The top 20 holders have 91.91%, up from 82.58% at listing, which included a public offer. The stock of the slope works contractor has quintupled since then - so the question is whether the slope will collapse.
SFC, 29-Mar-2021
The top 20 holders have 91.91%, up from 82.58% at listing, which included a public offer. The stock of the slope works contractor has quintupled since then - so the question is whether the slope will collapse.
Concentration warning in GT Steel Construction (8402)
SFC, 29-Mar-2021
The top 20 holders have 93.74%.
SFC, 29-Mar-2021
The top 20 holders have 93.74%.
SFC freezes accounts at 2 brokers in suspected social media pump & dump
| Restriction Notices
SFC, 9-Feb-2021
The SFC suspects 2 unnamed stocks were manipulated between Mar-Oct-2020. The Restriction Notices target HK$249.5m. This could relate to Skymission (1429) which collapsed 92.1% on 30-Oct, and the other may be Beng Soon Machinery (1987) which in our view is still a bubble.
SFC, 9-Feb-2021
The SFC suspects 2 unnamed stocks were manipulated between Mar-Oct-2020. The Restriction Notices target HK$249.5m. This could relate to Skymission (1429) which collapsed 92.1% on 30-Oct, and the other may be Beng Soon Machinery (1987) which in our view is still a bubble.
How the GameStop game will stop
…and who will benefit when it does. (28-Jan-2021)
…and who will benefit when it does. (28-Jan-2021)
SFC freezes accounts at 5 brokers, suspects market manipulation
| Restriction Notices
SFC, 26-Jan-2021
The stock which was allegedly manipulated between Sep-2020 and Oct-2020 is not named. The total amount targeted in the Restriction Notices is HK$153.78m. We note that one of the brokers, Realord Asia Pacific Securities Ltd, is owned by Realord (1196), which we consider is in a bubble. 3 of the brokers (Realord, AMC Wanhai and Eddid) were in the top 7 CCASS Participants in that stock at 30-Sep-2020.
SFC, 26-Jan-2021
The stock which was allegedly manipulated between Sep-2020 and Oct-2020 is not named. The total amount targeted in the Restriction Notices is HK$153.78m. We note that one of the brokers, Realord Asia Pacific Securities Ltd, is owned by Realord (1196), which we consider is in a bubble. 3 of the brokers (Realord, AMC Wanhai and Eddid) were in the top 7 CCASS Participants in that stock at 30-Sep-2020.
Concentration warning in Great Harvest Maeta (3683)
SFC, 23-Nov-2020
The top 20 holders have 96.66%.
SFC, 23-Nov-2020
The top 20 holders have 96.66%.
Concentration warning in C-Link Squared (1463)
SFC, 27-Oct-2020
The stock was listed on 27-Mar-2020. The top 20 holders have 97.39%.
SFC, 27-Oct-2020
The stock was listed on 27-Mar-2020. The top 20 holders have 97.39%.
Concentration warning in Ground International Development (0989)
SFC, 11-Sep-2020
The top 25 holders have 90.14%.
SFC, 11-Sep-2020
The top 25 holders have 90.14%.
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%.
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.
Concentration warning in Confidence Intelligence (1967)
SFC, 18-Mar-2020
The top 20 holders have 94.95%, up from 84.22% at the time of listing on 18-Oct-2019.
SFC, 18-Mar-2020
The top 20 holders have 94.95%, up from 84.22% at the time of listing on 18-Oct-2019.
Concentration warning in Zhejiang Cangnan Instrument (1743)
SFC, 4-Mar-2020
The top 20 holders have 92.93%.
SFC, 4-Mar-2020
The top 20 holders have 92.93%.
SFC to commence proceedings for suspected manipulation in China Ding Yi Feng (0612)
SFC, 22-Jan-2020
Against a number of individuals including at least 1 officer of the company. It's unclear whether the proceedings will be civil or criminal. Trading resumes tomorrow, but 32.37% remains frozen by the investigation. The bubble stock was suspended at $23.08 but net assets are just $0.07, so prepare for a spectacular, HK$28bn crash.
SFC, 22-Jan-2020
Against a number of individuals including at least 1 officer of the company. It's unclear whether the proceedings will be civil or criminal. Trading resumes tomorrow, but 32.37% remains frozen by the investigation. The bubble stock was suspended at $23.08 but net assets are just $0.07, so prepare for a spectacular, HK$28bn crash.
Concentration warning in ZZ Capital (8295)
SFC, 12-Dec-2019
The top 20 holders have 91.22%. This is the second warning - the stock has gained 82.7% since the first warning on 22-May-2019.
SFC, 12-Dec-2019
The top 20 holders have 91.22%. This is the second warning - the stock has gained 82.7% since the first warning on 22-May-2019.
Concentration warning in Central (1735)
SFC, 6-Dec-2019
The top 20 holders have 94.43% of the stock. Webb-site notes that the market cap is HK$2.34bn, or 14.1x net tangible assets at 30-Sep-2019.
SFC, 6-Dec-2019
The top 20 holders have 94.43% of the stock. Webb-site notes that the market cap is HK$2.34bn, or 14.1x net tangible assets at 30-Sep-2019.
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)
Concentration warning in Ling Yui (0784)
SFC, 18-Nov-2019
The top 20 holders have 91.90% of the stock.
SFC, 18-Nov-2019
The top 20 holders have 91.90% of the stock.
MSCI puts bubble stock ArtGo (3313) into China index
| Lose your marbles
Company announcement, 8-Nov-2019
Despite Webb-site's bubble warning on 15-Sep-2019, the SFC hasn't followed suit. The stock jumped 40% on Friday. Congratulations MSCI, you've just made it easier for active stock-pickers to outperform your mindless index by excluding ArtGo from their holdings - unless the SFC intervenes before the end of 26-Nov.
Company announcement, 8-Nov-2019
Despite Webb-site's bubble warning on 15-Sep-2019, the SFC hasn't followed suit. The stock jumped 40% on Friday. Congratulations MSCI, you've just made it easier for active stock-pickers to outperform your mindless index by excluding ArtGo from their holdings - unless the SFC intervenes before the end of 26-Nov.
Concentration warning in S. Culture (1255)
| Our warning
SFC, 27-Sep-2019
This follows our bubble warning on 15-Sep. The top 20 holders on 16-Sep hold 91.09% of the stock. Since our warning, the stock has dropped 26%. It's a start.
SFC, 27-Sep-2019
This follows our bubble warning on 15-Sep. The top 20 holders on 16-Sep hold 91.09% of the stock. Since our warning, the stock has dropped 26%. It's a start.
Lose your marbles
Webb-site issues a bubble warning on marble miner ArtGo (3313), which is up 812% since the end of May and now trades at 24x estimated net tangible assets, making a HK$29bn bubble. (15-Sep-2019)
Webb-site issues a bubble warning on marble miner ArtGo (3313), which is up 812% since the end of May and now trades at 24x estimated net tangible assets, making a HK$29bn bubble. (15-Sep-2019)
Avoid: S. Culture (1255)
Webb-site issues a bubble warning on this stock. The Chairman has pledged a majority shareholding to a lender. The loss-making firm is trading at 13 times its net tangible asset value and ownership may be highly concentrated. (15-Sep-2019)
Webb-site issues a bubble warning on this stock. The Chairman has pledged a majority shareholding to a lender. The loss-making firm is trading at 13 times its net tangible asset value and ownership may be highly concentrated. (15-Sep-2019)
Concentration warning in Grand Talents (8516)
SFC, 21-Jun-2019
The top 20 holders have 95.15%. The stock was listed on 15-Oct-2018. It is now at $3.03 or 7.58x its IPO price of $0.40.
SFC, 21-Jun-2019
The top 20 holders have 95.15%. The stock was listed on 15-Oct-2018. It is now at $3.03 or 7.58x its IPO price of $0.40.
Concentration warning in Kenford (0464)
SFC, 16-May-2019
The top 20 holders have 95.46% of the stock.
SFC, 16-May-2019
The top 20 holders have 95.46% of the stock.
Concentration warning in Xinchengyue (1755)
SFC, 2-Apr-2019
The top 20 holders have 92.82%. The IPO was priced at $2.90, the bottom of its range of $2.90-3.90, and only 3.6% of the offer was taken up by the public offer. 96.59% of the offer was taken by 25 placees. The stock is now 174% above the IPO price.
SFC, 2-Apr-2019
The top 20 holders have 92.82%. The IPO was priced at $2.90, the bottom of its range of $2.90-3.90, and only 3.6% of the offer was taken up by the public offer. 96.59% of the offer was taken by 25 placees. The stock is now 174% above the IPO price.
Inside the Kingdee bubble
It appears to be a Shenzhen success story, conquering the World with the "Chinese management model", but we burn through the techno-fog of the disclosures and dig deep inside the accounts. You won't like what you see. (18-Mar-2019)
It appears to be a Shenzhen success story, conquering the World with the "Chinese management model", but we burn through the techno-fog of the disclosures and dig deep inside the accounts. You won't like what you see. (18-Mar-2019)
Concentration warning in Reach New (8471)
SFC, 15-Mar-2019
The top 20 holders have 93.74%. The stock listed on 21-Jul-2017 and closed today at $1.51 or 5.03x its IPO price.
SFC, 15-Mar-2019
The top 20 holders have 93.74%. The stock listed on 21-Jul-2017 and closed today at $1.51 or 5.03x its IPO price.
Concentration warning in Fullwealth (1034)
SFC, 15-Mar-2019
The top 20 holders have 95.6%. The stock was listed on 30-Oct-2018 and closed today at $1.42, or 4.44x its IPO price.
SFC, 15-Mar-2019
The top 20 holders have 95.6%. The stock was listed on 30-Oct-2018 and closed today at $1.42, or 4.44x its IPO price.
Concentration warning in KNT (1025)
SFC, 13-Mar-2019
The top 20 holders have 93% of the stock, which has more than tripled in price since its 28-Feb listing.
SFC, 13-Mar-2019
The top 20 holders have 93% of the stock, which has more than tripled in price since its 28-Feb listing.
Concentration warning in Grand Investment (1160)
SFC, 8-Mar-2019
A rare concentration warning in a Chapter 21 (closed-end investment fund) company. 20 holders have 97.96% and it trades at about 21x NAV.
SFC, 8-Mar-2019
A rare concentration warning in a Chapter 21 (closed-end investment fund) company. 20 holders have 97.96% and it trades at about 21x NAV.
SFC directs suspension of China DYF (0612)
SEHK, 8-Mar-2019
This follows a complaint by Webb-site to the SFC on 18-Feb-2019 and a Bloomberg article on 22-Feb-2019. This is a "Chapter 21" closed-end investment fund, trading at about 86x NAV. Such companies are exempt from the public float requirement of the Listing Rules, and the SFC has not issued any concentration warning on this stock. Consequently it has been admitted into various HSI and MSCI indices, exacerbating the bubble. It was due to enter the HSI Large and Mid-Cap Index at the close of business today.
SEHK, 8-Mar-2019
This follows a complaint by Webb-site to the SFC on 18-Feb-2019 and a Bloomberg article on 22-Feb-2019. This is a "Chapter 21" closed-end investment fund, trading at about 86x NAV. Such companies are exempt from the public float requirement of the Listing Rules, and the SFC has not issued any concentration warning on this stock. Consequently it has been admitted into various HSI and MSCI indices, exacerbating the bubble. It was due to enter the HSI Large and Mid-Cap Index at the close of business today.
Mysterious 8,500% stock gain attracts big funds (and big questions)
Bloomberg, 22-Feb-2019
Comment: this is a closed-end investment fund trading at 93 times its net asset value, rather than the normal discount that such funds attract. MSCI and HSI should know better than to include such funds in their indices, as they are not regular companies and are prohibited from participating in business management. They are also exempt from the public float requirements, which is probably why the SFC has not issued concentration warnings on such stocks, but it should do so anyway.
Bloomberg, 22-Feb-2019
Comment: this is a closed-end investment fund trading at 93 times its net asset value, rather than the normal discount that such funds attract. MSCI and HSI should know better than to include such funds in their indices, as they are not regular companies and are prohibited from participating in business management. They are also exempt from the public float requirements, which is probably why the SFC has not issued concentration warnings on such stocks, but it should do so anyway.
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%.
Concentration warning in Furniweb (8480)
SFC, 30-Oct-2018
The top 20 holders have 91.43% of the company.
SFC, 30-Oct-2018
The top 20 holders have 91.43% of the company.
Concentration warning in Southeast Asia Properties & Finance (0252)
SFC, 25-Jul-2018
This follows a complaint by Webb-site to the SFC on 10-Jun-2018. The top 22 holders have 92.2%. The company has applied to list a subsidiary, Hotel Benito Holdings Ltd, on GEM, distributing 100% of it to existing holders. We complained that this would create another listed company with identical concentrated ownership.
SFC, 25-Jul-2018
This follows a complaint by Webb-site to the SFC on 10-Jun-2018. The top 22 holders have 92.2%. The company has applied to list a subsidiary, Hotel Benito Holdings Ltd, on GEM, distributing 100% of it to existing holders. We complained that this would create another listed company with identical concentrated ownership.
CMBC Capital (1141) grants HK$430m margin loan facility to another Macrolink company owned by Fu Kwan
Company announcement, 10-May-2018
That's on top of a US$30m loan to another of Mr Fu's companies 2 days earlier, and existing loans to that company of US$70m. The margin loan is at 8.5% p.a.. CMBC Capital's total exposure to Mr Fu's companies is now HK$1,210m, or about 96% of its net tangible assets. CMBC Capital in our view is a bubble stock, with a market value of HK$24.3bn, or about 19 times its net tangible assets.
Company announcement, 10-May-2018
That's on top of a US$30m loan to another of Mr Fu's companies 2 days earlier, and existing loans to that company of US$70m. The margin loan is at 8.5% p.a.. CMBC Capital's total exposure to Mr Fu's companies is now HK$1,210m, or about 96% of its net tangible assets. CMBC Capital in our view is a bubble stock, with a market value of HK$24.3bn, or about 19 times its net tangible assets.
Concentration warning in Beaver (8275)
Company announcement, 23-Mar-2018
The top 20 holders have 94.89%.
Company announcement, 23-Mar-2018
The top 20 holders have 94.89%.
Concentration warning in China Tianrui (1252)
SFC, 8-Feb-2018
The top 20 holders have 97.545% of the stock.
SFC, 8-Feb-2018
The top 20 holders have 97.545% of the stock.
Concentration warning in Kingston (1031)
SFC, 29-Jan-2018
20 holders have 91.653% of the stock. Hang Seng Services Ltd included it in the Mid-cap Index as announced on 16-Aug-2017. Now they will have to remove it.
SFC, 29-Jan-2018
20 holders have 91.653% of the stock. Hang Seng Services Ltd included it in the Mid-cap Index as announced on 16-Aug-2017. Now they will have to remove it.
Concentration warning in Satu (8392)
Company announcement, 11-Dec-2017
The top 20 holders have 95.481%.
Company announcement, 11-Dec-2017
The top 20 holders have 95.481%.
Concentration warning in Nanjing Sample Tech (1708)
SFC, 9-Nov-2017
The top 20 holders have 94.7% of the H-shares.
SFC, 9-Nov-2017
The top 20 holders have 94.7% of the H-shares.
Concentration warning in Nanfang Communication (1617)
SFC, 31-Oct-2017
The top 14 holders have 92.19%.
SFC, 31-Oct-2017
The top 14 holders have 92.19%.
Concentration warning in Hengxing Gold (2303)
SFC, 11-Oct-2017
The top 20 holders have 98.1% of the company.
SFC, 11-Oct-2017
The top 20 holders have 98.1% of the company.
Concentration warning in ITP Holdings (8446)
SFC, 14-Sep-2017
Despite having a public offer tranche, by 2.5 months after listing, the top 16 holders had 94.76% of the company. The stock is now over 20x its IPO price. This nicely demonstrates that requiring a public offer (which HKEX has proposed) won't prevent bubbles.
SFC, 14-Sep-2017
Despite having a public offer tranche, by 2.5 months after listing, the top 16 holders had 94.76% of the company. The stock is now over 20x its IPO price. This nicely demonstrates that requiring a public offer (which HKEX has proposed) won't prevent bubbles.
Concentration warning in Haitian Energy (8261)
SFC, 4-Sep-2017
The top 20 holders have 93.64% of the company.
SFC, 4-Sep-2017
The top 20 holders have 93.64% of the company.
Concentration warning in Worldgate Global (8292)
SFC, 6-Jul-2017
20 holders have 93.95% of the shares.
SFC, 6-Jul-2017
20 holders have 93.95% of the shares.
Concentration warning in Da Sen (1580)
SFC, 23-Jun-2017
At 7-Jun-2017, 18 holders had 97.23% of the company.
SFC, 23-Jun-2017
At 7-Jun-2017, 18 holders had 97.23% of the company.
Concentration warning in Yat Sing (3708)
SFC, 14-Jun-2017
This follows a complaint by Webb-site to the SFC on 14-Jan-2017 and a second one on 31-May-2017 when MSCI put it in their small-cap index. Now they should eject it. The top 21 holders have 90.06% of the company.
SFC, 14-Jun-2017
This follows a complaint by Webb-site to the SFC on 14-Jan-2017 and a second one on 31-May-2017 when MSCI put it in their small-cap index. Now they should eject it. The top 21 holders have 90.06% of the company.
Concentration warning in Zheng Li (8283)
SFC, 8-Jun-2017
14 shareholders have 95.53% of the company.
SFC, 8-Jun-2017
14 shareholders have 95.53% of the company.
Concentration warning in China Hengshi (1197)
SFC, 20-Apr-2017
The top 20 holders have 95.84% of the company. And yes, there was a public offer in this listing.
SFC, 20-Apr-2017
The top 20 holders have 95.84% of the company. And yes, there was a public offer in this listing.
Concentration warning in Dadi Education (8417)
SFC, 30-Mar-2017
The top 16 shareholders have 98.63% of the company.
SFC, 30-Mar-2017
The top 16 shareholders have 98.63% of the company.
SFC directs suspension of GME (8188) on day 1
SEHK, 22-Feb-2017
We don't yet know the reason for the suspension, but the stock is up 543% on its placing price. However, if that is the only reason, then why hasn't the SFC suspended other bubbles like China Jicheng (1027), Luen Wong (8217), Tai Kam (8321), Fullshare (0607) and Zall (2098), to name just a few?
SEHK, 22-Feb-2017
We don't yet know the reason for the suspension, but the stock is up 543% on its placing price. However, if that is the only reason, then why hasn't the SFC suspended other bubbles like China Jicheng (1027), Luen Wong (8217), Tai Kam (8321), Fullshare (0607) and Zall (2098), to name just a few?
GME (8188) allotments and concentration warning
| CCASS allocations
Company announcement, 21-Feb-2017
Company announcement, 21-Feb-2017
Concentration warning in SingAsia (8293)
SFC, 14-Feb-2017
This is a GEM stock but it did have a public offer when it listed. The top 19 public shareholders now have 83.2% of the float.
SFC, 14-Feb-2017
This is a GEM stock but it did have a public offer when it listed. The top 19 public shareholders now have 83.2% of the float.
Zhi Sheng (8370) allotments and concentration warning
| CCASS allocations
Company announcement, 19-Jan-2017
The top 25 placees have 99.70% of the placing.
Company announcement, 19-Jan-2017
The top 25 placees have 99.70% of the placing.
MEIGU Technology (8349) allotments and concentration warning
| CCASS allocations
Company announcement, 12-Jan-2017
The top 10 placees have 97.46% of the placing.
Company announcement, 12-Jan-2017
The top 10 placees have 97.46% of the placing.
LKS (8415) allotments and concentration warning
| CCASS allocations
Company announcement, 11-Jan-2017
Company announcement, 11-Jan-2017
HM (8416) allotments and concentration warning
| CCASS allocations
Company announcement, 10-Jan-2017
The top 25 placees have 94.07% of the placing.
Company announcement, 10-Jan-2017
The top 25 placees have 94.07% of the placing.
Bar Pacific (8432) allotments and concentration warning
| CCASS allocations
Company announcement, 10-Jan-2017
The top 10 placees have 96.70% and the top 25 have 99.54% of the placing.
Company announcement, 10-Jan-2017
The top 10 placees have 96.70% and the top 25 have 99.54% of the placing.
Miricor (8358) allotments and concentration warning
| CCASS allocations
Company announcement, 9-Jan-2017
The top 25 placees have 96.63% of the placing.
Company announcement, 9-Jan-2017
The top 25 placees have 96.63% of the placing.
PF (8221) allotments and concentration warning
| CCASS allocations
Company announcement, 4-Jan-2017
The top 25 placees have 87.78% of the placing.
Company announcement, 4-Jan-2017
The top 25 placees have 87.78% of the placing.
OOH (8091) allotments and concentration warning
| CCASS allocations
Company announcement, 4-Jan-2017
The top 25 placees have 99.06% of the placing. Ooh, ah....
Company announcement, 4-Jan-2017
The top 25 placees have 99.06% of the placing. Ooh, ah....
Sing On (8352) allotments and concentration warning
| CCASS allocations
Company announcement, 14-Dec-2016
Company announcement, 14-Dec-2016
KNK (8039) allotments and concentration warning
Company announcement, 9-Dec-2016
The top 10 placees have 93.68% of the placing. The top 25 have 98.42%.
Company announcement, 9-Dec-2016
The top 10 placees have 93.68% of the placing. The top 25 have 98.42%.
K W Nelson (8411) allotments and concentration warning
Company announcement, 7-Dec-2016
The top 25 placees have 95.48% of the placing.
Company announcement, 7-Dec-2016
The top 25 placees have 95.48% of the placing.
Topsearch (2323) buys & subscribes 9.15% of SkyNet (8176) @$4.80 for HK$200m
| SkyNet announcement
Company announcement, 23-Nov-2016
Topsearch is buying 6.25m shares (1.49% of existing shares) from Eternity Investment (0764), and subscribing for 35,416,666 new Skynet shares. Eternity is selling down 25m shares of its existing 52m shares (12.39%) stake. At $4.80, the existing market cap of SkyNet is $2015m, but at 30-Jun-2016, it had net tangible assets of just HK$81.4m. Pre-placing, the top 6 holders have 91.48% of SkyNet. It's a bubble.
Company announcement, 23-Nov-2016
Topsearch is buying 6.25m shares (1.49% of existing shares) from Eternity Investment (0764), and subscribing for 35,416,666 new Skynet shares. Eternity is selling down 25m shares of its existing 52m shares (12.39%) stake. At $4.80, the existing market cap of SkyNet is $2015m, but at 30-Jun-2016, it had net tangible assets of just HK$81.4m. Pre-placing, the top 6 holders have 91.48% of SkyNet. It's a bubble.
Zall (2098) coughs up details of financial assets at 30-Jun-2016
Company announcement, 14-Nov-2016
This follows a complaint by Webb-site to HKEX on 28-Oct-2016. Zall held, as we suspected, 4.3% of Fullshare (607). Fullshare, as we already knew, holds over 8% of Zall. Both stocks are huge bubbles, in our view. The SFC issued a concentration warning in Zall in mid-2014, but has not issued one in Fullshare.
Company announcement, 14-Nov-2016
This follows a complaint by Webb-site to HKEX on 28-Oct-2016. Zall held, as we suspected, 4.3% of Fullshare (607). Fullshare, as we already knew, holds over 8% of Zall. Both stocks are huge bubbles, in our view. The SFC issued a concentration warning in Zall in mid-2014, but has not issued one in Fullshare.
Zheng Li (8283) allotments and concentration warning
Company announcement, 7-Nov-2016
The top 10 placees have 91.0% of the placing and the top 25 have 97.8%. 74 placees got 1 or 2 board lots, or 0.41% of the placing in total. The remaining 31 placees have 1.8% of the placing.
Company announcement, 7-Nov-2016
The top 10 placees have 91.0% of the placing and the top 25 have 97.8%. 74 placees got 1 or 2 board lots, or 0.41% of the placing in total. The remaining 31 placees have 1.8% of the placing.
Tai Kam (8321) allotments and concentration warning
Company announcement, 27-Oct-2016
The top 25 placees have 98% of the placing.
Company announcement, 27-Oct-2016
The top 25 placees have 98% of the placing.
Concentration warning in Natural Beauty (0157)
SFC, 25-Oct-2016
The top 20 shareholders hold 94.94%.
SFC, 25-Oct-2016
The top 20 shareholders hold 94.94%.
SFC warns market on CIFG (0412)
Following Webb-site's bubble warning on 26-Sep-2016, the SFC has conducted an ownership investigation. (13-Oct-2016)
Following Webb-site's bubble warning on 26-Sep-2016, the SFC has conducted an ownership investigation. (13-Oct-2016)
Concentration warning in Gold-Finance (1462)
SFC, 4-Oct-2016
Comment: net tangible assets at 31-Mar-2016 were $0.635/share, and EPS was $0.0481, so at today's closing price of $12.56, the stock is at 19.8x NTA and the P/E ratio is 261.
SFC, 4-Oct-2016
Comment: net tangible assets at 31-Mar-2016 were $0.635/share, and EPS was $0.0481, so at today's closing price of $12.56, the stock is at 19.8x NTA and the P/E ratio is 261.
Hiding behind the cornerstones
Webb-site reveals that investors who took 31% of a bank IPO had secretly laid off their risk by issuing derivatives to a mainland property developer from the same city, via two HK-listed companies which incidentally are bubble stocks. When we complained, HKEX did not require disclosure of the bank’s identity, thereby preserving the secrecy behind the cornerstone investors which facilitate HKEX’s IPO business. Once again, the regulatory conflict of interest is exposed. (3-Oct-2016)
Webb-site reveals that investors who took 31% of a bank IPO had secretly laid off their risk by issuing derivatives to a mainland property developer from the same city, via two HK-listed companies which incidentally are bubble stocks. When we complained, HKEX did not require disclosure of the bank’s identity, thereby preserving the secrecy behind the cornerstone investors which facilitate HKEX’s IPO business. Once again, the regulatory conflict of interest is exposed. (3-Oct-2016)
China Innovative Finance (0412) bubble
Hao Tian Development (0474) has confirmed our view by dumping 9.06% of CIFG at a 61.9% discount, still well above the net tangible asset value of $0.099. CIFG should trade below NTAV due to its appalling governance and membership of what we call the "Chung Nam Network". The purported profits of its leasing division are largely illusory and depend heavily on 1 customer in which CIFG has invested. HTD has also been allowed by HKEX to skirt the Listing Rules on corporate transactions. (26-Sep-2016)
Hao Tian Development (0474) has confirmed our view by dumping 9.06% of CIFG at a 61.9% discount, still well above the net tangible asset value of $0.099. CIFG should trade below NTAV due to its appalling governance and membership of what we call the "Chung Nam Network". The purported profits of its leasing division are largely illusory and depend heavily on 1 customer in which CIFG has invested. HTD has also been allowed by HKEX to skirt the Listing Rules on corporate transactions. (26-Sep-2016)
CEEI (0986) sells China Jicheng (1027), buys Luen Wong (8217)
Company announcement, 18-Aug-2016
What it doesn't say: CEEI has breached Listing Rules by failing to obtain shareholders' approval in advance of Major Transactions and by failing to announce them for 4 weeks. Each stock is the subject of SFC concentration warnings. We calculate that the purchase of Luen Wong shares is at a P/B of 321 and a P/E of 861. CEEI says the deal is "fair and reasonable", "a good investment opportunity" and "an attractive investment which will provide satisfactory return".
Company announcement, 18-Aug-2016
What it doesn't say: CEEI has breached Listing Rules by failing to obtain shareholders' approval in advance of Major Transactions and by failing to announce them for 4 weeks. Each stock is the subject of SFC concentration warnings. We calculate that the purchase of Luen Wong shares is at a P/B of 321 and a P/E of 861. CEEI says the deal is "fair and reasonable", "a good investment opportunity" and "an attractive investment which will provide satisfactory return".
Concentration warning in Season Pacific (8127)
SFC, 12-Aug-2016
The top 20 shareholders have 99.9% of the company at 1-Aug-2016.
SFC, 12-Aug-2016
The top 20 shareholders have 99.9% of the company at 1-Aug-2016.
MMT finds no insider dealing in Warderly shares
SFC, 5-Aug-2016
We don't disagree with the finding, but we annotate errors in the report regarding the outcome of an open offer. The MMT finds that when the duo sold shares in 2007, the information was no longer material, as the company was publicly known to be in difficulty and the stock was trading on its shell potential. Also, the alleged loss avoided becomes a profit avoided if the open offer had been taken up. Incidentally, Warderly is now known as Fullshare (0607) and in our view it is a bubble stock on 9x NAV, part of which is shares in another bubble stock, Zall (2098) which trades around 4x NAV.
SFC, 5-Aug-2016
We don't disagree with the finding, but we annotate errors in the report regarding the outcome of an open offer. The MMT finds that when the duo sold shares in 2007, the information was no longer material, as the company was publicly known to be in difficulty and the stock was trading on its shell potential. Also, the alleged loss avoided becomes a profit avoided if the open offer had been taken up. Incidentally, Warderly is now known as Fullshare (0607) and in our view it is a bubble stock on 9x NAV, part of which is shares in another bubble stock, Zall (2098) which trades around 4x NAV.
Concentration warning in Goldenmars (3638)
SFC, 8-Jun-2016
This follows a Webb-site complaint to the SFC on 30-Apr-2016.
SFC, 8-Jun-2016
This follows a Webb-site complaint to the SFC on 30-Apr-2016.
TEM (8346) allotment results and concentration warning
Company announcement, 17-May-2016
The top 25 placees have 98.68% of the float.
Company announcement, 17-May-2016
The top 25 placees have 98.68% of the float.
Expert Systems (8319) allotments and concentration warning
| CCASS allocations
Company announcement, 11-Apr-2016
Company announcement, 11-Apr-2016
Luen Wong (8217) allotments and concentration warning
| CCASS allocations
Company announcement, 11-Apr-2016
Company announcement, 11-Apr-2016
China Jicheng (1027) umbrella bubble to split again
Company circular, 8-Apr-2016
There will be 75 billion issued shares, just in case everyone on Earth wants 10 each. The stock at HK$1.20 trades at 42.7x book value and 720x last year's profit.
Company circular, 8-Apr-2016
There will be 75 billion issued shares, just in case everyone on Earth wants 10 each. The stock at HK$1.20 trades at 42.7x book value and 720x last year's profit.
Hypebeast (8359) allotments and concentration warning
| CCASS allocations
Company announcement, 8-Apr-2016
Company announcement, 8-Apr-2016
Concentration warning in Vinco Financial (8340)
SFC, 6-Apr-2016
At 31-Dec-2015, the company had net tangible assets of HK$23.4m of which 92% was cash. It's market value tonight is HK$755.2m.
SFC, 6-Apr-2016
At 31-Dec-2015, the company had net tangible assets of HK$23.4m of which 92% was cash. It's market value tonight is HK$755.2m.
Super Strong (8262) allotments and concentration warning
| CCASS allocations
Company announcement, 29-Mar-2016
Company announcement, 29-Mar-2016
Ching Lee (8318) allotments and concentration warning
| CCASS allocations
Company announcement, 24-Mar-2016
Company announcement, 24-Mar-2016
Concentration warning in Jujiang Construction (1459)
SFC, 4-Feb-2016
Comment: unlike the GEM, the Main Board Listing Rules do not require any statement of the distribution of placing shares at the time of listing. 90% of the issue was placed, probably in concentrated hands, but no disclosure was required before trading began on 16-Jan. The main board rules should adopt the GEM requirement, disclosing how many shares went to the largest, top 5, top 10 and so on.
SFC, 4-Feb-2016
Comment: unlike the GEM, the Main Board Listing Rules do not require any statement of the distribution of placing shares at the time of listing. 90% of the issue was placed, probably in concentrated hands, but no disclosure was required before trading began on 16-Jan. The main board rules should adopt the GEM requirement, disclosing how many shares went to the largest, top 5, top 10 and so on.
Hanergy (0566) stake sale implies US$20bn in value wiped out
Bloomberg, 29-Dec-2015
Well that's a good end to the year. See our bubble warning of 31-Dec-2014. As the stock has been frozen for so long, perhaps they should rename it "Hanergy Thin Ice".
Bloomberg, 29-Dec-2015
Well that's a good end to the year. See our bubble warning of 31-Dec-2014. As the stock has been frozen for so long, perhaps they should rename it "Hanergy Thin Ice".
Concentration warning in Xiwang Special Steel (1266)
| Company announcement
SFC, 27-Nov-2015
The company also announces that its free float has dropped below 25% due to exercise of options by directors.
SFC, 27-Nov-2015
The company also announces that its free float has dropped below 25% due to exercise of options by directors.
CAID (0048) gains from umbrella bubble
Following a Webb-site complaint to regulators, CAID has revealed 3 holdings, including umbrella maker China Jicheng (1027), still trading at over 70x NAV. CAID expects the investments to contribute a positive return in the near future, but doesn't say why. Meanwhile Lerado (1225) hasn't said how it made similar gains. Is it also in the umbrella bubble? (10-Oct-2015)
Following a Webb-site complaint to regulators, CAID has revealed 3 holdings, including umbrella maker China Jicheng (1027), still trading at over 70x NAV. CAID expects the investments to contribute a positive return in the near future, but doesn't say why. Meanwhile Lerado (1225) hasn't said how it made similar gains. Is it also in the umbrella bubble? (10-Oct-2015)
Thelloy Dev (8122): allotments and concentration warning
| CCASS allocations
Company announcement, 8-Oct-2015
Placed at $0.325. The top 25 placees have 99.42% of the float.
Company announcement, 8-Oct-2015
Placed at $0.325. The top 25 placees have 99.42% of the float.
KPa-BM (8141): allotments and concentration warning
| CCASS allocations
Company announcement, 7-Oct-2015
The top 25 placees have 97.6% of the float.
Company announcement, 7-Oct-2015
The top 25 placees have 97.6% of the float.
Ahsay Backup (8290): allotments and concentration warning
| CCASS allocations
Company announcement, 7-Oct-2015
The top 25 placees have 94.2% of the float.
Company announcement, 7-Oct-2015
The top 25 placees have 94.2% of the float.
Madison Wine (8057): allotments and concentration warning
| CCASS allocations
Company announcement, 7-Oct-2015
The top 25 placees have 94.6% of the float.
Company announcement, 7-Oct-2015
The top 25 placees have 94.6% of the float.
Season Pacific (8127): allotments and concentration warning
| CCASS allocations
Company announcement, 6-Oct-2015
The top 10 placees have 99.06% of the float.
Company announcement, 6-Oct-2015
The top 10 placees have 99.06% of the float.
On Real (8245): allotments and concentration warning
Company announcement, 29-Sep-2015
The top 25 placees have 94.18% of the float.
Company announcement, 29-Sep-2015
The top 25 placees have 94.18% of the float.
FDB (8248): allotments and concentration warning
Company announcement, 29-Sep-2015
The top 25 placees have 99.44% of the float, and the top 10 have 91.76%.
Company announcement, 29-Sep-2015
The top 25 placees have 99.44% of the float, and the top 10 have 91.76%.
Bubbles and troubles in Hong Kong
Pour yourself a coffee and digest this long article as we investigate several ongoing abusive "open offers" and placings as well as show you who's been making out in multi-billion-dollar bubbles. We call on regulators and rule-makers to take action. (24-Sep-2015)
Pour yourself a coffee and digest this long article as we investigate several ongoing abusive "open offers" and placings as well as show you who's been making out in multi-billion-dollar bubbles. We call on regulators and rule-makers to take action. (24-Sep-2015)
Concentration warning in Noble House (8246)
SFC, 28-Aug-2015
At today's closing price of $5.28, the company has a market value of $2266m, but its net assets at 30-Jun-2015 were $83.8m, so the loss-making firm trades at 27x NAV.
SFC, 28-Aug-2015
At today's closing price of $5.28, the company has a market value of $2266m, but its net assets at 30-Jun-2015 were $83.8m, so the loss-making firm trades at 27x NAV.
Pak Wing (8316): allotments and concentration warning
| CCASS allocations
Company announcement, 7-Aug-2015
The top 10 placees have 96.1% of the float.
Company announcement, 7-Aug-2015
The top 10 placees have 96.1% of the float.
Concentration warning in Goldin Properties (0283)
SFC, 8-Jun-2015
14 holders have 95.16% of the stock.
SFC, 8-Jun-2015
14 holders have 95.16% of the stock.
Goldin Properties (0283): we don't know why our bubble is bursting
Company announcement, 21-May-2015
The stock is down 45.7% at the lunchtime break today.
Company announcement, 21-May-2015
The stock is down 45.7% at the lunchtime break today.
Concentration warning in Jicheng Umbrella (1027)
Company announcement, 14-May-2015
The surge in the stock price gives new meaning to "umbrella movement".
Company announcement, 14-May-2015
The surge in the stock price gives new meaning to "umbrella movement".
China Env Energy (0986) pays HK$113m for 1.73% of L & A (8195)
Company announcement, 12-May-2015
The average price per share was $1.62. At 31-Dec-2014, L & A had equity of $136.73m, or $0.034 per share. So the price is about 48x book value of the OEM cashmere clothing maker. In our view, China Env Energy has just invested in another bubble, following its investment in Suncorp (1063). The question is, why?
Company announcement, 12-May-2015
The average price per share was $1.62. At 31-Dec-2014, L & A had equity of $136.73m, or $0.034 per share. So the price is about 48x book value of the OEM cashmere clothing maker. In our view, China Env Energy has just invested in another bubble, following its investment in Suncorp (1063). The question is, why?
Concentration warning in King Force Security (8315)
SFC, 13-Apr-2015
Placed at $0.385 last August, now trading at $9.00. What could possibly go wrong?
SFC, 13-Apr-2015
Placed at $0.385 last August, now trading at $9.00. What could possibly go wrong?
Concentration warning in Goldin Financial (0530)
SFC, 13-Mar-2015
This follows a complaint by Webb-site to the SFC on 26-Feb-2015. In our view, at HK$121bn, it is currently the second-biggest bubble in HK after the HK$275bn Hanergy (0566).
SFC, 13-Mar-2015
This follows a complaint by Webb-site to the SFC on 26-Feb-2015. In our view, at HK$121bn, it is currently the second-biggest bubble in HK after the HK$275bn Hanergy (0566).
Concentration warning in Times Property (1233)
| Webb-site Who's Who: CCASS analysis
SFC, 12-Mar-2015
Webb-site Who's Who shows that 96.9% of the shares in the clearing system are held by 5 custody accounts.
SFC, 12-Mar-2015
Webb-site Who's Who shows that 96.9% of the shares in the clearing system are held by 5 custody accounts.
Concentration warning in Yestar (2393)
| Interpol Red Notice for Samadikun Hartono
SFC, 11-Feb-2015
This follows a complaint filed by Webb-site with the SFC on 9-Dec-2014. Incidentally, the father of the 4 Hartono siblings is Samadikun Hartono, who is a fugitive from Indonesian justice with an Interpol Red Notice outstanding.
SFC, 11-Feb-2015
This follows a complaint filed by Webb-site with the SFC on 9-Dec-2014. Incidentally, the father of the 4 Hartono siblings is Samadikun Hartono, who is a fugitive from Indonesian justice with an Interpol Red Notice outstanding.
Concentration warning in Finsoft (8018)
SFC, 5-Feb-2015
This follows the warning in a Webb-site article on 31-Dec-2014.
SFC, 5-Feb-2015
This follows the warning in a Webb-site article on 31-Dec-2014.
The bubbles in CNN
We warn investors of 3 bubbles amounting to HK$20.0bn (US$2.58bn) in the "Chung Nam Network" of listed companies, Heritage (0412), Rising Dev (1004) and Mascotte (0136) and look at a blatantly bad decision by the board of Hao Tian (0474), and an undisclosed Very Substantial Acquisition by that company. One of the bubbles is even a Russian doll "double bubble" - one owns the other. (8-Jan-2015)
We warn investors of 3 bubbles amounting to HK$20.0bn (US$2.58bn) in the "Chung Nam Network" of listed companies, Heritage (0412), Rising Dev (1004) and Mascotte (0136) and look at a blatantly bad decision by the board of Hao Tian (0474), and an undisclosed Very Substantial Acquisition by that company. One of the bubbles is even a Russian doll "double bubble" - one owns the other. (8-Jan-2015)
Imperial Pacific bubble
We look at the HK$24.8bn (US$3.2bn) bubble in Imperial Pacific (1076) surrounding a Macau junket operation and a casino project in Saipan. (8-Jan-2015)
We look at the HK$24.8bn (US$3.2bn) bubble in Imperial Pacific (1076) surrounding a Macau junket operation and a casino project in Saipan. (8-Jan-2015)
Kuangchi the stratospheric stock
Our latest New Year bubble worth popping is Kuangchi (0439), HK's top-performing stock of 2014, valued at HK$32.03bn (US$4.13bn) or 16.1x NTAV. (2-Jan-2015)
Our latest New Year bubble worth popping is Kuangchi (0439), HK's top-performing stock of 2014, valued at HK$32.03bn (US$4.13bn) or 16.1x NTAV. (2-Jan-2015)
Some bubbles for New Year
With the exchange shut for 2014, we take a close look at two bubbles and the other listed companies surrounding them. (31-Dec-2014)
With the exchange shut for 2014, we take a close look at two bubbles and the other listed companies surrounding them. (31-Dec-2014)
Concentration warning in Sinogreen (1159)
SFC, 11-Nov-2014
Webb-site analysis: Sinogreen had net assets at 30-Jun-2014 of $24.1m and raised $164.4m from the issue of shares and convertible bonds to a Macau junket operator on 19-Sep-2014, with an issue and conversion price of $0.35. Upon full conversion, there will be 652,564,800 shares in issue, with a pro forma net asset value of $0.29 per share. The shares trade at $13.00, or about 45 times NAV.
SFC, 11-Nov-2014
Webb-site analysis: Sinogreen had net assets at 30-Jun-2014 of $24.1m and raised $164.4m from the issue of shares and convertible bonds to a Macau junket operator on 19-Sep-2014, with an issue and conversion price of $0.35. Upon full conversion, there will be 652,564,800 shares in issue, with a pro forma net asset value of $0.29 per share. The shares trade at $13.00, or about 45 times NAV.
Concentration warning in Rising Development (1004)
SFC, 29-Oct-2014
This follows a complaint by Webb-site to the SFC on 7-Oct-2014.
SFC, 29-Oct-2014
This follows a complaint by Webb-site to the SFC on 7-Oct-2014.
Concentration warning in JF Household (0776)
SFC, 25-Mar-2014
This follows a previous warning in 2009.
SFC, 25-Mar-2014
This follows a previous warning in 2009.
Concentration warning in Yunbo Digital Synergy (8050)
SFC, 7-Mar-2014
The company had net tangible assets of HK$125.6m at 30-Sep-2013. Tonight the market cap is HK$5154m, or about 41 times NTA.
SFC, 7-Mar-2014
The company had net tangible assets of HK$125.6m at 30-Sep-2013. Tonight the market cap is HK$5154m, or about 41 times NTA.
Major (8209) allotments and concentration warning
| CCASS allocations
Company announcement, 9-Jan-2014
Company announcement, 9-Jan-2014
U Banquet (8107) allotments and concentration warning
Company announcement, 9-Dec-2013
The top 25 placees have 91.49% of the placing.
Company announcement, 9-Dec-2013
The top 25 placees have 91.49% of the placing.
Concentration warning in Reorient (0376)
SFC, 27-May-2013
This follows a request filed by Webb-site with the SFC on 18-Apr-2013.
SFC, 27-May-2013
This follows a request filed by Webb-site with the SFC on 18-Apr-2013.
Concentration warning in Grand Concord (0844)
SFC, 4-Sep-2012
This follows a request by Webb-site to the SFC late on Fri-10-Aug-2012 for an investigation of ownership concentration. The snapshot date is the next trading day, 13-Aug-2012.
SFC, 4-Sep-2012
This follows a request by Webb-site to the SFC late on Fri-10-Aug-2012 for an investigation of ownership concentration. The snapshot date is the next trading day, 13-Aug-2012.
Concentration warning in Zall Development (2098)
SFC, 18-Oct-2011
This follows a complaint by Webb-site to the SFC on 3-Oct-2011.
SFC, 18-Oct-2011
This follows a complaint by Webb-site to the SFC on 3-Oct-2011.
Concentration warning in Tanrich (812)
SFC, 26-May-2011
This follows a complaint made to the SFC by Webb-site on 4-May-2011.
SFC, 26-May-2011
This follows a complaint made to the SFC by Webb-site on 4-May-2011.
Concentration warning in Asia Commercial (0104)
SFC, 26-Oct-2010
We note that the Webb-site CCASS Analysis system shows that the top 10 accounts hold 94% of the stock in CCASS.
SFC, 26-Oct-2010
We note that the Webb-site CCASS Analysis system shows that the top 10 accounts hold 94% of the stock in CCASS.
Manipulation mania
What are markets really for? Does the law on market manipulation, and its enforcement, create unreasonable expectations from investors about the information in market prices, volumes and order queues? We say it does. It is time for the Government and SFC to review their approach and reset public expectations. We also look at shill bidding in auctions. (12-Jul-2010)
What are markets really for? Does the law on market manipulation, and its enforcement, create unreasonable expectations from investors about the information in market prices, volumes and order queues? We say it does. It is time for the Government and SFC to review their approach and reset public expectations. We also look at shill bidding in auctions. (12-Jul-2010)
Concentration warning in Rainbow Brothers (0033)
SFC, 5-May-2010
At 22-Apr-2010, the top 20 holders have 92.90%.
SFC, 5-May-2010
At 22-Apr-2010, the top 20 holders have 92.90%.
Concentration warning in UURG (8192)
SFC, 26-Apr-2010
This follows our article of 25-Sep-09 which contained a bubble warning.
SFC, 26-Apr-2010
This follows our article of 25-Sep-09 which contained a bubble warning.
Imagi rights v shares gap
With Imagi's stock down 67.4% in 3 days since our bubble warning, the rights began trading this morning, at a huge discount to the share price, raising obvious questions of whether the market in either counter is false. If you own the shares and believe in the current valuation (which we don't) then why aren't you selling your shares and buying the rights to get free cash? (21-Apr-2010)
With Imagi's stock down 67.4% in 3 days since our bubble warning, the rights began trading this morning, at a huge discount to the share price, raising obvious questions of whether the market in either counter is false. If you own the shares and believe in the current valuation (which we don't) then why aren't you selling your shares and buying the rights to get free cash? (21-Apr-2010)
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)
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)
Larvotto - do you know the boatyard?
We probe the history of the SHKP/Kerry/Paliburg Larvotto, a luxury industrial-cum-residential project overlooking a typhoon shelter but behind boatyards and sawmills, which are noisy enough for the Environmental Protection Department to object to the Town Planning Board's approval, as minutes reveal. "Non-openable windows" were cited as a mitigating measure. Yours for just HK$25k/psf - can you see the bubble? (3-Mar-2010)
We probe the history of the SHKP/Kerry/Paliburg Larvotto, a luxury industrial-cum-residential project overlooking a typhoon shelter but behind boatyards and sawmills, which are noisy enough for the Environmental Protection Department to object to the Town Planning Board's approval, as minutes reveal. "Non-openable windows" were cited as a mitigating measure. Yours for just HK$25k/psf - can you see the bubble? (3-Mar-2010)
Concentration warning in Bloomage BioTec (0963)
SFC, 8-Feb-2010
This follows a request by Webb-site.com to the SFC on 18-Jan-10 for an ownership investigation.
SFC, 8-Feb-2010
This follows a request by Webb-site.com to the SFC on 18-Jan-10 for an ownership investigation.
Concentration warning in Vitar (0195)
SFC, 3-Feb-2010
This follows a request by Webb-site.com to the SFC on 22-Jan-10 for an ownership investigation.
SFC, 3-Feb-2010
This follows a request by Webb-site.com to the SFC on 22-Jan-10 for an ownership investigation.
Concentration warning in Fong's Industries (0641)
SFC, 12-Jan-2010
This follows a complaint by Webb-site.com to the SFC on 1-Dec-09 about likely concentration of the stock.
SFC, 12-Jan-2010
This follows a complaint by Webb-site.com to the SFC on 1-Dec-09 about likely concentration of the stock.
Concentration warning in Thinsoft (8096)
SFC, 23-Dec-2009
We told you so - see our article of 11-Dec-09. Now why doesn't the SFC have a screening system that notices these things before we do?
SFC, 23-Dec-2009
We told you so - see our article of 11-Dec-09. Now why doesn't the SFC have a screening system that notices these things before we do?
Thinsoft's thin ice
There's a bubble in Thinsoft (8096), suspended with a market value of HK$1,604m and net assets of $33m. Over 95% of the company is in the custody of 2 brokers. We also discuss the archaic practice of parallel trading, which was to have been abolished in 2008. HKEx appears to have given up on that. (11-Dec-2009)
There's a bubble in Thinsoft (8096), suspended with a market value of HK$1,604m and net assets of $33m. Over 95% of the company is in the custody of 2 brokers. We also discuss the archaic practice of parallel trading, which was to have been abolished in 2008. HKEx appears to have given up on that. (11-Dec-2009)
China Strategic bubble
We warn investors of a bubble in the stock of China Strategic, the 80% owner of the proposed buyer of Taiwan's Nan Shan Life Insurance, partly financed by a massive note issue convertible into 78bn shares at $0.10 each. We publish the placing list and analyse the names in the deal. Finally, we warn investors to avoid 7 companies in the "Chung Nam network", which has lost HK$6.2bn in 5 years. (13-Nov-2009)
We warn investors of a bubble in the stock of China Strategic, the 80% owner of the proposed buyer of Taiwan's Nan Shan Life Insurance, partly financed by a massive note issue convertible into 78bn shares at $0.10 each. We publish the placing list and analyse the names in the deal. Finally, we warn investors to avoid 7 companies in the "Chung Nam network", which has lost HK$6.2bn in 5 years. (13-Nov-2009)
Concentration warning in iOne (982), controlled by Wilson Pong Wai San
SFC, 13-Oct-2009
This follows a request by Webb-site.com to the SFC on 4-Sep-09 for a concentration investigation.
SFC, 13-Oct-2009
This follows a request by Webb-site.com to the SFC on 4-Sep-09 for a concentration investigation.
The UURG to Purge
We look at the history of UURG (8192), currently controlled by battle-of-wills feng shui man Tony Chan Chun Chuen, and warn investors about the bubble surrounding the stock, which is trading at 191 times diluted NAV. (25-Sep-2009)
We look at the history of UURG (8192), currently controlled by battle-of-wills feng shui man Tony Chan Chun Chuen, and warn investors about the bubble surrounding the stock, which is trading at 191 times diluted NAV. (25-Sep-2009)
Byford bubble
Investors should beware of a bubble in Byford (8272), which boasts two celebrity shareholders - New World Development's Cheng Yu Tung and Angela Leong, a wife of casino tycoon Stanley Ho. Both apparently paid 186x net asset value for the shares. (1-Jun-2009)
Investors should beware of a bubble in Byford (8272), which boasts two celebrity shareholders - New World Development's Cheng Yu Tung and Angela Leong, a wife of casino tycoon Stanley Ho. Both apparently paid 186x net asset value for the shares. (1-Jun-2009)
Incredibubble!
What else can you call a US$3.2tn market which has gained 358% in 20 months and trades on a historic P/E of over 60, which is probably closer to 80-100 if you take out stock-market and real-estate revaluations from "E". We look at the bubble, the impact on HK, the thru-train, the calls in HK for an A-H arbitrage mechanism, and how the bursting may affect the socio-political system. The absence of a free media is itself contributing to the bubble. (16-Sep-2007)
What else can you call a US$3.2tn market which has gained 358% in 20 months and trades on a historic P/E of over 60, which is probably closer to 80-100 if you take out stock-market and real-estate revaluations from "E". We look at the bubble, the impact on HK, the thru-train, the calls in HK for an A-H arbitrage mechanism, and how the bursting may affect the socio-political system. The absence of a free media is itself contributing to the bubble. (16-Sep-2007)
Bubble warning: CFII (1227)
Webb-site.com warns investors to avoid China Financial Industry Investment Fund Ltd (1227), a closed-end investment company trading at over 28 times its net asset value. We also find a surprising addition to the ranks of its independent directors. (13-Jul-2007)
Webb-site.com warns investors to avoid China Financial Industry Investment Fund Ltd (1227), a closed-end investment company trading at over 28 times its net asset value. We also find a surprising addition to the ranks of its independent directors. (13-Jul-2007)
B&B and Aptus
We issue a Webb-site.com "bubble rap" warning on Aptus (8212) and its parent B&B (8156). Aptus claims to have a deal with an arm of CNPC, parent of PetroChina, which apparently needs tiny GEM companies to help finance its mainland oilfields, while B&B, a honey trader, has bought a ticket in the mainland lottery which we expect will give you a worse return than the Mark Six if you buy the stock. We also take a close look at the financial engineering behind all this. (22-May-2006)
We issue a Webb-site.com "bubble rap" warning on Aptus (8212) and its parent B&B (8156). Aptus claims to have a deal with an arm of CNPC, parent of PetroChina, which apparently needs tiny GEM companies to help finance its mainland oilfields, while B&B, a honey trader, has bought a ticket in the mainland lottery which we expect will give you a worse return than the Mark Six if you buy the stock. We also take a close look at the financial engineering behind all this. (22-May-2006)
Stir-Fried Lobster
We issue a bubble warning on Hon Po Group (Lobster King) (0228), and dig into the background to its apparent transformation into the next big thing, coal mining in Inner Mongolia. (19-Apr-2006)
We issue a bubble warning on Hon Po Group (Lobster King) (0228), and dig into the background to its apparent transformation into the next big thing, coal mining in Inner Mongolia. (19-Apr-2006)
Bubble Rap: Kanstar
We renew our bubble warning on Kanstar Environmental Paper Products (8011), which is trading on a price/book ratio of 23.5 and barely made a profit last year. (24-Mar-2006)
We renew our bubble warning on Kanstar Environmental Paper Products (8011), which is trading on a price/book ratio of 23.5 and barely made a profit last year. (24-Mar-2006)
Seapower and Galileo Bubbles
Webb-site.com issues two bubble warnings - a billion-dollar bubble at Seapower Resources (0269) and another, smaller one at Galileo Capital (8029), which unlike its namesake, defies gravity. (9-May-2005)
Webb-site.com issues two bubble warnings - a billion-dollar bubble at Seapower Resources (0269) and another, smaller one at Galileo Capital (8029), which unlike its namesake, defies gravity. (9-May-2005)
Kamboat and CITIC 21CN bubbles
We issue a bubble warning on stocks of Chinese restaurant and bakery firm Kamboat (0318) and mainland SMS/IVRS play CITIC21CN (0241). (23-Mar-2005)
We issue a bubble warning on stocks of Chinese restaurant and bakery firm Kamboat (0318) and mainland SMS/IVRS play CITIC21CN (0241). (23-Mar-2005)
Concentration warning and breach of Listing Rules 8.08 and 13.32(1)
Company announcement, 18-Mar-2005
Company announcement, 18-Mar-2005
Concentration warning, IPO was placed by Watterson Asia Ltd with relatives of then Finance Director
Company announcement, 22-Sep-2004
Company announcement, 22-Sep-2004
Kanstar Won't Star
We issue a bubble warning on Kanstar - a company run by the son of convicted former legislator Chim Pui Chung, which is trading at 29 times net assets and has yet to make an annual profit. We also take a look at Chim's comeback campaign and his other listed investments. (10-Aug-2004)
We issue a bubble warning on Kanstar - a company run by the son of convicted former legislator Chim Pui Chung, which is trading at 29 times net assets and has yet to make an annual profit. We also take a look at Chim's comeback campaign and his other listed investments. (10-Aug-2004)
Radford (0901) portfolio disclosure and ownership investigation
Company announcement, 29-Oct-2003
The SFC writes: "we note a very close relationship between the shareholders of the Company and its investments". At the suspended price of $1.34, the closed-end investment company was trading at 9.24x its NAV of 30-Sep-2003.
Company announcement, 29-Oct-2003
The SFC writes: "we note a very close relationship between the shareholders of the Company and its investments". At the suspended price of $1.34, the closed-end investment company was trading at 9.24x its NAV of 30-Sep-2003.
SFC directs suspension of Radford (0901)
Company announcement, 22-Oct-2003
A rare intervention in what is obviously a bubble stock. "The SFC has expressed concerns that there is no orderly and fair market in the Company's shares and that the interest of the investing public may be prejudiced, if trading were to continue."
Company announcement, 22-Oct-2003
A rare intervention in what is obviously a bubble stock. "The SFC has expressed concerns that there is no orderly and fair market in the Company's shares and that the interest of the investing public may be prejudiced, if trading were to continue."
Concentration warning in Radford (0901)
Company announcement, 20-Aug-2003
16 holders of this closed-end investment company have 90.04% of the company as at 8-Jul-2003. The stock at $0.48 is trading at 4.07x its 31-Jul-2003 net asset value of $0.118.
Company announcement, 20-Aug-2003
16 holders of this closed-end investment company have 90.04% of the company as at 8-Jul-2003. The stock at $0.48 is trading at 4.07x its 31-Jul-2003 net asset value of $0.118.
Guo Xin Toxin
In a follow-up to our story on the Interchina bubble, we tell you about Guo Xin Holdings, which is controlled by the same man after he bailed it out of difficulties. Guo Xin is trading in a bubble of 7x net assets, and Mr Zhang has already dumped stock and got his money back and $129m cash on top, while holding shares and warrants currently priced at $491m. You have been warned. (29-May-2002)
In a follow-up to our story on the Interchina bubble, we tell you about Guo Xin Holdings, which is controlled by the same man after he bailed it out of difficulties. Guo Xin is trading in a bubble of 7x net assets, and Mr Zhang has already dumped stock and got his money back and $129m cash on top, while holding shares and warrants currently priced at $491m. You have been warned. (29-May-2002)
MSCI Boils the Interchina Bubble
Oh dear - it seems like the index compilers in Geneva don't read Webb-site.com - they have just put Interchina Holdings into the MSCI Small-cap Index, despite the clear warning from SFC investigations and our previous article that the stock has been cornered and ramped. Now this property stock is trading at over 7.5x net tangible assets instead of the discount to NTA it deserves. (16-May-2002)
Oh dear - it seems like the index compilers in Geneva don't read Webb-site.com - they have just put Interchina Holdings into the MSCI Small-cap Index, despite the clear warning from SFC investigations and our previous article that the stock has been cornered and ramped. Now this property stock is trading at over 7.5x net tangible assets instead of the discount to NTA it deserves. (16-May-2002)
Interchina Bubble
Pop quiz: what's the largest stock in the Hang Seng Small-cap Index? It's mainland property investor Interchina Holdings Ltd - at HK$7.11bn (US$912m). But not for long, we think. At 16.4x net asset value, this stock shows classic signs of being manipulated, and the SFC has investigated twice - you have been warned. (23-Oct-2001)
Pop quiz: what's the largest stock in the Hang Seng Small-cap Index? It's mainland property investor Interchina Holdings Ltd - at HK$7.11bn (US$912m). But not for long, we think. At 16.4x net asset value, this stock shows classic signs of being manipulated, and the SFC has investigated twice - you have been warned. (23-Oct-2001)
Concentration warning and SFC investigation into trading in shares
Company announcement, 18-Apr-2000
Company announcement, 18-Apr-2000
End of The Equity Spiral
We look in detail at last week's announcement of the proposed acquisition by Pacific Century CyberWorks of Cable & Wireless HKT. The issue of inflated shares in the deal will raise our valuation per share, but PCCW is now so big that the equity spiral is over, and there's a gap of US$44bn of hope or hype in the price. Read our detailed evaluation and discover the key "crossover" point between the two offers. (5-Mar-2000)
We look in detail at last week's announcement of the proposed acquisition by Pacific Century CyberWorks of Cable & Wireless HKT. The issue of inflated shares in the deal will raise our valuation per share, but PCCW is now so big that the equity spiral is over, and there's a gap of US$44bn of hope or hype in the price. Read our detailed evaluation and discover the key "crossover" point between the two offers. (5-Mar-2000)
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