Tuesday 14th June 2011

Dear Reader,

It's been a while since we sent a newsletter, hasn't it? Here's a few morsels to keep you going. Remember that, apart from our occasional articles, you can follow our daily updates on HK events via RSS, Twitter, or Facebook.

Nine Dragons spotlights SFC regulation of CRAs
Today's plunge in Nine Dragons (2689), sparked by a withdrawal of a credit rating, raises questions about the new SFC regulations of Credit Rating Agencies. CRAs have privileged access to inside information and a contractual relationship with issuers. The SFC should prohibit them from publishing price-sensitive news during market hours. (14-Jun-2011)

CNH spread
In a 4-bank survey, Webb-site looks at the wide spreads and differing prices offered by HK banks to residents for exchange between HKD and CNH, the offshore proxy for the mainland CNY. (13-Jun-2011)

HIV error
SCMP provides a classic example of the dangers of reprinting syndicated news feeds without thinking. (5-Jun-2011)

Current issues in HK-listed corporate governance
A presentation by David Webb at a conference in HK. (27-May-2011)

Reforming HK Markets - the Political Realities
A presentation by David Webb to the FIX Protocol conference. (25-May-2011)

Guilty Chiang 'mastermind' of HK$3.7m scam
HK Standard, 10-Jun-2011
Ann Chiang Lai-wan reportedly said: "She did not expect such a verdict. No clothing and skin-care products were prepared." - which begs the question, what kind of skin-care products does one need for jail? Sunscreen, perhaps? Are black-and-white stripes still fashionable attire or is an orange jumpsuit more suitable? What would Martha Stewart advise?

Charles Peter Mok v Samson Tam Wai Ho
HK Court of Appeal, 9-Jun-2011
Mr Mok loses his appeal in a 2:1 majority verdict.

Hard Rock Cafe opens in HK (again). Hard times claim the Hard Rock
HK Government, 7-Jun-2011
You have to admire their timing. The last time the HRC shut down in HK (see the second link above) on 23-Nov-2008, the Hang Seng Index was at 12,659.

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