Tuesday 9th September 2014

Dear Reader,

Fixing the Small House Policy
We look at a recent court case which again highlights the rampant abuse of the Small House Policy for the New Territories. We propose a return to the original policy intent, creating an internal market for indigenous housing, together with a voluntary, market-based scheme to surrender the claims of indigenous men and their under-age and unborn male descendants. (9-Sep-2014)

HKT's abuse of ID numbers
Your ID number is not a password; so many firms and people know your identity - but dominant land-line provider HKT Ltd (6823) is using it that way to access your phone bills. HKT: Here to Cut Corners. (9-Sep-2014)

Definition of the day: HK Electric

PCPD not answering our calls
After blogging about parts of an "intemperate grilling" from the Commerce and Economic Development Bureau over his call for a do-not-call person-to-person register, igniting public debate, the Privacy Commissioner has now refused our request, under the Code on Access to Information, for copies of the CEDB's letter and his reply letter, citing a lack of public interest. He can't have it both ways. (5-Sep-2014)

ISS recommends against Lerado (1225) sale
Webb-site has learned that ISS, the leading proxy advisory firm, has joined us in recommending voting against the sale of Lerado's core business, due to the excessive capital retention. (4-Sep-2014)

Veto Lerado (1225) sale until they pay up
We call on Lerado shareholders to veto the sale of its core business unless and until the board increased the proposed special dividend from $0.30 to at least HK$1 per share. We would rather hold a stake in a real business than get trapped in another shell trading at a discount to its net cash. Management only owns 33%, so they had better listen to investors and revise the plan. David Webb holds just under 8%, and we need your support. (1-Sep-2014)

Soon, we can all be rubber stamps
Our take on yesterday's command from Beijing. (1-Sep-2014)

Tai Po District Councillor Lo Sou-chour charged with HK$500k expenses fraud
ICAC, 5-Sep-2014

Ming Fung (0860) shareholders veto 10:1 share consolidation
Company announcement, 5-Sep-2014
Obviously Hengdeli (3389) voted its 1bn shares against. If they had voted in favour, it would have passed. The shares closed on Friday at $0.085.

Mr Ng Shiu Hong fined HK$30k + costs. The circular
HKICPA, 1-Sep-2014
This probably relates to the circular by Siberian Mining (1142, then Rontex) dated 31-Dec-2008 regarding the Very Substantial Acquisition for US$253m of Langfield Enterprises Ltd, which owned 70% of a company which owned a Russian coal mining licence. Mr Ng's then firm Shu Lun Pan Horwath was the reporting accountant. The firm merged into BDO Ltd on 1-May-2009, where Mr Ng remains a director. On 16-Jul-2013 he was appointed by the HK Government to the Financial Reporting Review Panel.

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