Wednesday 31st December 2014
Dear Reader,
NEW ARTICLE
Some bubbles for New
Year
With the exchange shut for 2014, we take a close look
at two bubbles and the other listed companies surrounding them. (31-Dec-2014)
RECENTLY ON WEBB-SITE
Government changes
Basic Law facts
In a Webb-site exclusive, we reveal that the
HK Government has revised its own fact sheets on the Basic Law with politically
sensitive consequences. (18-Dec-2014)
An aerial tour
of HK's monopolies and anti-competitive practices
The slides from a
presentation by Webb-site founder David Webb to the Asian Competition Forum at
Polytechnic University this morning. When you get to slide 30, click the box to
launch the online video. (9-Dec-2014)
IN OTHER NEWS
HKICPA,
in 2 rulings, bans Garret Zeng Xianggao for 10 months.
2nd
ruling.
HKICPA, 24-Dec-2014
We note
that he is an INED and audit committee member of Capinfo Co Ltd (1075) and China
Financial International Investments Ltd (0721).
Lo Shing Kin v Stephen Sy Chin Mong
HK Court of
Final Appeal, 23-Dec-2014
SFC takes
Citron Research head to MMT over Evergrande (3333) report.
s277, SFO.
SFC, 22-Dec-2014
This
should be interesting. The SFC will need to show that Andrew Left either knew
that his allegations were false or was reckless or negligent as to whether they
were, in which case Section 277 of the SFO bites.
SHK & Co (0086) lends HK$700m to an unnamed company...
Company announcement, 22-Dec-2014
But we can
tell you that the borrower is almost certainly FDG Electric Vehicles (0729)
which is currently making an offer for CIAM (0378). Allied Properties (0056),
which owns 70% of SHK, gets a HK$14m "referral fee". The loan rate of 1.5% per
month is 19.6% APR.
Ex-property
agents in court for alleged bribery over flat sale
ICAC, 19-Dec-2014
HK Companies Registry finds new way to milk its monopoly
Company announcement, 19-Dec-2014
The CR has
the monopoly on companies register information; last year it made a pre-tax
profit of HK$347m on $606m of fees, including $70m of search fees, so it would
still make a huge profit without charging to see the data. The principles of
open data for public sector information require it to abolish the pay-wall and
let the market innovate presentations and utilities for the data. Same goes for
the Land Registry.
SHKP (0016): the son rises
Company
announcement, 19-Dec-2014
As is traditional when an Asian tycoon is
convicted, his son replaces him on the board of the listed company.
Court freezes
bank accounts of suspected boiler rooms.
ASIC warning
SFC, 19-Dec-2014
We
note that Australian regulator ASIC has also warned about "Phoenix Creek
Capital" which used a bank account in ICBC (Asia) held by SMD Partnership Ltd,
one of the entities that the SFC warns about. ASIC also warns of a company
called Drake Trading Ltd with an account at HSBC.
China Gold Finance Ltd v CIL Holdings Ltd (0479) & others
HK Court of First Instance, 19-Dec-2014
SEC sanctions
Baker Tilly HK, Andrew David Ross and Helena Kwok Lai Ha
US SEC, 17-Dec-2014
Ever-Long Finance Ltd v Rebecca Chan Pui Ching
HK District Court, 17-Dec-2014
The plaintiff is owned by Styland
(0211). The defendant repaid a 2nd mortgage by borrowing from the plaintiff. A
total of $217,100 in fees were charged, reducing the net loan to $712,900, so we
calculate that the monthly repayments of $27,023 for 10 years would have
resulted in an Annualised Percentage Rate on the net loan of 55.45%.
Penta Investment Advisers Ltd v Allied Weli Development Ltd
HK Court of First Instance, 14-Oct-2014
Penta successfully sues a BVI company at the centre of what we call the "Chung
Nam Network" over a guarantee of a profit from a subscription of shares in
Mascotte (0136) which followed a heavy loss on an earlier subscription in
Freeman (0279). The claimed quantum is HK$211m. After a restructuring, Allied
Weli is now a 100% subsidiary of HEC Capital Ltd.
And much more besides...
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