Wednesday 31st December 2014

Dear Reader,

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)

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)

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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