Wednesday 24th October 2012

Dear Reader,

NEW ARTICLE
Air China's balance sheet worries
We look at the highly-geared balance sheet of Air China, the bizarre and unfinished mini-subscription by its parent launched 6 months ago, and the likely need for a much larger equity financing if it is going to run on free-market principles, which in turn has implications for Cathay Pacific's 20% stake. (24-Oct-2012)

The welfare claims ratio
UPDATED 21-Oct: a newspaper columnist who opposes means-testing of the proposed Old Age Living Allowance recently claimed that it is an "open secret" that most of the elderly who qualify for fruit money don't claim it. We put that urban myth to rest with detailed estimates showing at least a 90% claims ratio. (17-Oct-2012)

RECENTLY ON WEBB-SITE
Help the needy, not the needless
We price the proposed Old Age Living Allowance if means-testing is scrapped to make it a universal pension, and what it would mean for tax rates down the road to a welfare state. We show you the increasingly educated and affluent profile of future retirees, and call on Government to refocus on a better, properly means-tested and rebranded elderly CSSA system. We also look at the $2 fare scheme, another scattergun attempt at welfare. (12-Oct-2012)

IN OTHER NEWS
Listing Appeals Committee censures Styland and certain directors
SEHK, 24-Oct-2012
10 years after a series of articles on Webb-site put the spotlight on this firm and its people, the Stock Exchange disciplinary process limps to a conclusion, having been overtaken by SFC action in the courts.

Lashing for lawmaker in illegal structure rumpus. See the house on Google Maps
HK Standard, 24-Oct-2012

PCD Stores (0331): breaches of Listing Rules: undisclosed and unapproved advances to connected persons
Company announcement, 19-Oct-2012
This follows similar problems at Ports Design (0589) disclosed in May. Ports Design is controlled by the same brothers.

Tongda (0698) reveals 76% increase in staff headcount in last 6 years
Company announcement, 19-Oct-2012
This announcement follows a complaint regarding non-disclosure, filed by Webb-site with SEHK on 2-Oct-2012.

Tycoonlets appointed to Lingnan University Council
HK Gazette, 19-Oct-2012
Nikki Ng Mien Hua and Douglas Woo Chun Kuen are appointed by the Chief Executive of HK, C Y Leung. Nikki is a daughter of Robert Ng Chee Siong, Chairman of Sino Land, and Douglas is the son of Peter Woo Kwong Ching, Chairman of Wheelock. Both companies are property developers.

HK Govt launches TV propaganda campaign for OALA
YouTube, 18-Oct-2012
Never mind the fact that the Legislative Council hasn't yet approved financing for it!

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