Sunday 11th April 2010

Dear Reader,

We'll have a few words to say soon about the flaws in the Government's deposit protection scheme. But first...

NEW ARTICLE
HKEx AGM: veto item 7
We urge shareholders of HKEx (0388) to veto a proposed change to the Articles of Association which would damage good governance and facilitate the stifling of dissenting views. We speak from first-hand experience. HKEx is setting a bad example to the companies it regulates, and the rot should stop now. In passing, we also cast an eye on the ongoing CITIC Pacific case.

RECENT ARTICLES
Cooked auctions in HK
A Court of Appeal judgment overturns fraud convictions for bid-rigging for cooked food stalls at Tai Po Hui Market and makes clear that bid-rigging is perfectly legal. We call for the proposed competition law to make bid-rigging, price-fixing and other anti-competitive behaviour criminal offences. Civil tribunals won't cut it, not least because they cannot fine humans. In the meantime, the Government should include no-rigging warranties as a requirement for all tenders, so that they can prosecute for fraud. (8-Apr-10)

Government supermarket vouchers
Supermarket vouchers are often used as a sales incentive in HK, for anything from minibonds to TVs. The Government's last proposal for a competition law would still allow behaviour such as resale price maintenance, which the EU outlaws because it is "severely anti-competitive". Have you ever wondered how much those supermarket vouchers actually cost? A government tender to buy them reveals the answer. (27-Mar-10)

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