Tuesday 26th May 2015

Dear Reader,

We need your help - make a submission to the SFC!

Principles of Responsible Regulation
Webb-site calls on the SFC, Government and HKEx to get serious about facilitating investor stewardship. Principles of Responsible Ownership are only useful if regulators address the deficiencies in Hong Kong's governance framework for listed companies. We call on readers to make a submission too, and support our proposed Principles of Responsible Regulation. (26-May-2015)

Putting the FRC in Farcical (updated 22-May-2015)
In a shocking failure to recognise a basic and obvious accounting and auditing error, HK's Financial Reporting Council rejected our complaint. The listed company involved has now admitted the error. We call on the FRC's Process Review Panel to investigate how it deals with complaints. (16-Apr-2015)

HKTDC holds cocktail party for Chairman Jack So
Company media release, 23-May-2015
So, Jack, how much did this adulation cost the taxpayer-owned TDC?

Duo jailed over Pearl Oriental Oil (0632) acquisition
ICAC, 22-May-2015

Businessman charged with bribing policeman
ICAC, 22-May-2015

Manager charged with accepting HK$300k in kickbacks
ICAC, 21-May-2015

Mimi Wong Kar Gee v K C Ho & Fong
HK Court of First Instance, 20-May-2015

Modern Land (1107) plans to cancel dividend
Company announcement, 18-May-2015
"the Board has come to the view that issuance of bonus Shares as a return to the Shareholders will give them an opportunity to increase their shareholdings in the Company at the comparably low costs". What a misleading statement. Cutting the pizza into more slices does not give people more pizza.

Chinachem Charitable Foundation Ltd v Secretary for Justice
HK Court of Final Appeal, 18-May-2015

Mimi Wong Kar Gee v Raymond Hung Kin Sang
HK Court of Final Appeal, 18-May-2015
The long divorce battle surrounding the co-founders of Applied Development (0519) comes to an end, with the husband winning the final round.

Civil servant and wife in alleged HK$4.2m housing loan and allowance fraud
ICAC, 15-May-2015

Police Sergeant faces court for HK$170k unauthorised loans and fraud
ICAC, 15-May-2015

Power Assets (0006) independent shareholders veto loans to parent
Company announcement, 14-May-2015
They called it the purchase of "connected debt securities" but it amounts to lending money to the parent, which is never a good idea. It was close though, no doubt after a lot of lobbying.

Concentration warning in Jicheng Umbrella (1027)
Company announcement, 14-May-2015
The surge in the stock price gives new meaning to "umbrella movement".

Concentration warning in Yan Tat (1480)
SFC, 14-May-2015

Trio in court over marriage fraud
ICAC, 13-May-2015

HKSAR v Carson Yeung Ka Sing
HK Court of Appeal, 13-May-2015
Mr Yeung loses his appeal against convictions.

China Jinhai (0139) sells 15/F China United Centre in shell
Company announcement, 12-May-2015
The announcement fails to say who owns the buyer. We can tell you that as of 18-Sep-2012, Future Master Investments Ltd was owned by Cordoba Homes Ltd. That is 94.54% owned by HEC Capital Ltd (a hub of the "Chung Nam Network") and 5.46% owned by Mission Capital (1141). The shell deal avoids 8.5% Double Stamp Duty on the deal. The deal occurs just 6 weeks after completing the purchase of the same thing from Qualipak (1332).

And much more besides...
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