Friday 25th March 2011

Dear Reader,

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Response to SEHK on Corporate Governance Consultation
Webb-site publishes a detailed response to the Exchange's consultation on the corporate governance rules and code, including recommendations for fundamental reform and the results of the opinion poll on INEDs. (25-Mar-2011)

Ping An: not the whole picture
We look behind last night's shock placing by Ping An Insurance to tycoon Cheng Yu Tung, and call for a full explanation from the issuer. (15-Mar-2011)

David Webb's 4th submission to LegCo on proposed Special Stamp Duty

Universal pensions in HK: the case against
In a guest contribution, economist Jim Walker lays out the case against calls for a universal pension in HK, including the lessons from history of the European welfare state. (12-Mar-2011)

The cost of a universal pension
Following Jim Walker's guest article today, we run the numbers to show why a universal pension would put HK on the road to fiscal hell, a high-tax European-style welfare state. The ageing population means a HK$6k per month pension in 2039 would imply at least a 35% tax rate, and probably higher as mobile profits and professionals leave. Even 13 years from now, tax rates would rise to at least 28.5% to balance the budget. (12-Mar-2011)

Webb on "Backchat" re universal pension
RTHK, 24-Mar-2011

Various alleged triad members v HKSAR
HK Court of Appeal, 22-Mar-2011

Credit China (8207) acquires interest in 100m shares of Tack Hsin (0611)
Disclosure of interest, 22-Mar-2011
This is probably a convertible bond acquired off-market. Credit China was listed on 19-Nov-2010.

CITIC Pacific Ltd v Secretary for Justice & another
HK Court of First Instance, 18-Mar-2011

Fins Development Ltd & Hong Kong Huaming Co Ltd v Elke Tang Yuen Ting
HK Court of First Instance, 18-Mar-2011
This case involves possible abuse of funds from a wholly-owned subsidiary of Jingwei Textile (0350) which purportedly were intended to be routed into leveraged foreign exchange accounts held in the names of two of its staff at Cosmas Hantec Investment (NZ) Ltd, an unlicensed entity. The defendant was declared bankrupt after being fined by the SFC last year.

International school enrolment in HK, latest data
HK Government, 16-Mar-2011

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