Sunday 11th October 2015

Dear Reader,

Tomorrow and Tuesday David Webb will be in Singapore for the SIAS Corporate Governance conference. We hope to see a few readers there!

NEW ARTICLE
CAID (0048) gains from umbrella bubble
Following a Webb-site complaint to regulators, CAID has revealed 3 holdings, including umbrella maker China Jicheng (1027), still trading at over 70x NAV. CAID expects the investments to contribute a positive return in the near future, but doesn't say why. Meanwhile Lerado (1225) hasn't said how it made similar gains. Is it also in the umbrella bubble? (10-Oct-2015)

RECENTLY IN WEBB-SITE REPORTS
Transcend This
If the new policy of "decolonisation" requires HK Post to vandalise its boxes, then what comes next? Perhaps the royal insignia on the Court of Final Appeal building will be "transcended". (5-Oct-2015)

Bubble warning: MPG (8147) (update 10-Oct-2015)
This stock closed at a record daily high of $12.40 on Wednesday, 91.8x its listing price for a US$1.67bn bubble, but even as a shell, in our view it is only worth about $0.25, for 98% downside. (1-Oct-2015)

Tung Chao Yung, born with the Republic of China (update 3-Oct-2015)
A historic document reveals the date of birth of shipping tycoon C Y Tung, father of HK's first Chief Executive. (27-Sep-2015)

IN OTHER NEWS
Financial statements of AzureTax Ltd, 30-Jun-2011
Company filing, 9-Oct-2015
Deborah Annells was the sole director. The auditor's report and note 12(c) refer to the police investigation.

Tax consultant Deborah Annells is found guilty
HowardWinnReports, 9-Oct-2015

SFAT schedules hearing on HSBC's sales of Lehman products for May 2016
SFC, 9-Oct-2015

Government: colonial posting boxes still in service are "inappropriate"
HK Government, 9-Oct-2015
The Government is "looking into ways to update the markings on these boxes". Send them suggestions on a postcard. So are the royal insignia on the Court of Final Appeal building, and the crown on its dome, also "inappropriate"? How about the street names? Queen's Road to become Deng's Road?

China Soft Power (0139) increases to 24.19% of Skyway Securities (1141). Senworth filing
Disclosure of interest, 8-Oct-2015
The 14.75% stake was purchased for HK$434m ($0.31/share). Both companies are in what we call the "Chung Nam Network". Neither company has made an announcement. The vendor was probably Senworth Ltd, which made a corresponding filing.

SFC bans Wong Chun for eight years over false trading
SFC, 8-Oct-2015

Ocean Grand liquidators get court approval for litigation financing
HK Court of First Instance, 8-Oct-2015
The companies are not named, but from the case numbers we know that they are former subsidiaries of Ocean Grand Holdings Ltd, which collapsed in 2006. The parent company went through a scheme of arrangement and emerged as Zhidao (1220). The liquidators, presumably still Deloitte, can now sue unnamed persons to try to recover money for the bondholders, who as of 2008 were owed about HK$1.2bn

KPa-BM (8141): allotments and concentration warning. CCASS allocations
Company announcement, 7-Oct-2015
The top 25 placees have 97.6% of the float.

Ahsay Backup (8290): allotments and concentration warning CCASS allocations
Company announcement, 7-Oct-2015
The top 25 placees have 94.2% of the float.

Madison Wine (8057): allotments and concentration warning. CCASS allocations
Company announcement, 7-Oct-2015
The top 25 placees have 94.6% of the float.

Jonathan Lu, Caitlin Lu & Carl Lu v Paul Chan Mo Po & Frieda Hui
HK Court of First Instance, 7-Oct-2015

HKICPA fines 3 members/directors of Birmingham (2309) HK$1k each
HKICPA, 6-Oct-2015
This is a follow-on action from a SEHK Listing Committee sanction over 3 years ago.

Season Pacific (8127): allotments and concentration warning. CCASS allocations
Company announcement, 6-Oct-2015
The top 10 placees have 99.06% of the float

Ex-Chief Executive Donald Tsang Yam Kuen bailed
ICAC, 5-Oct-2015

HKEx drops second-class shares proposal
SEHK, 5-Oct-2015
HKEx has finally thrown in the towel on its attempts to list second-class shares. Corporate governance was already bad enough without making it even easier to abuse minority shareholders. Charles Liís campaign to do this exposed the blatant conflict of interests in the Exchange being a for-profit regulator. This conflict should now be addressed by transplanting the listing function to the SFC, the statutory regulator. The Listing Committee, dominated by issuer interests, needs radical reform too.

Ex-Chief Executive Donald Tsang Yam Kuen charged with misconduct
ICAC, 5-Oct-2015
Note: the architect involved, Barrie Ho Chow Lai, was also appointed by Donald Tsang as a member of the HK Housing Authority on 1-Apr-2012. We wonder whether Mr Tsang made any disclosure at that time.

Court disqualifies former Chairmen, CEO of First China Financial Network (8123)
SFC, 2-Oct-2015

And much more besides...
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