Monday 14th December 2015

Dear Reader,

Busting HK's road transport cartels
On the day the competition law takes effect, we take a long hard look at the anti-competitive legislation and policies which support a HK$116bn taxi cartel, a $22bn minibus cartel and a $13bn non-franchised bus cartel as well as restricting the hire car market. The Government should scrap all restrictions and franchises, introduce congestion pricing, and allow competition to serve the public interest. (14-Dec-2015)

Court dismisses appeal by Lam Fai Man, ex-Dep Ch of Victory Group (1139)
SFC, 9-Dec-2015
Comment: there is an overdue law amendment to remove the requirement to file with the company, which can subscribe to notifications from the Stock Exchange like anyone else. One filing with SEHK should be enough.

SFC v Lam Fai Man (fka Lin Huiwen)
HK Court of First Instance, 8-Dec-2015
Mr Lam loses his appeal of conviction for failing to file disclosures of interests with the company (although filings were made with SEHK). He was Deputy Chairman of Victory Group (1139) until 7-Jun-2013 when his re-election was vetoed at the AGM. We have no evidence that he resigned in Apr-2013 as stated in paragraph 82(4) and 82(15) of the judgment.

Ex-policeman gets two years for misconduct, perjury and perversion
ICAC, 7-Dec-2015

Sister of former District Councillor voted for him outside her constituency
ICAC, 4-Dec-2015

Twelve jailed for fraud over construction of small houses
ICAC, 4-Dec-2015
Ding ding! There must be quite a few indigenous men looking over their shoulders tonight - monetising ding "rights" and entering into forward sale agreements over their village houses is widespread. They are not rights but a product of misguided 1970s Government policy. A charge against David Li Yam Pui of conspring to bribe the head of the Shatin Rural Committee, Mok Kam Kwai, was apparently dropped though, and Mok was never charged

CAID (0048) proposes to invest HK$300m via Opus Capital Management
Company announcement, 3-Dec-2015
The two-stage investment will be in cash or specie - in other words part or all of CAID's existing portfolio, which includes bubble umbrella stock China Jicheng (1027).

Taurus Lo Shung Chi, Ngai Wai Chung and Jonten Hopkins CPA Ltd sanctioned. Track record
HKICPA, 3-Dec-2015
This relates to the Sep-2010 audit of Ming Fung Jewellery Group Ltd, now known as O Luxe Holdings Ltd (0860). According to Webb-site Who's Who, the firm has audited 11 listed companies with an average annual total return of -16.18%, or -28.59% relative to the market during the periods of appointment.

Lei Shing Hong Credit Ltd v Christian Anthony Bullen
HK Court of First Instance, 3-Dec-2015

MMT clears 3 in Asia TeleMedia case
SFC, 26-Nov-2015
The firm is now Reorient Group Ltd (0376). The MMT makes no finding on Lu Ruifeng, who was hospitalised outside the jurisdiction. It finds that 2 of the defendants knew negative price-sensitive information but that this was not a factor when they sold their shares during the 2007 market bubble. Comment: if the same events were to happen today, then the board would have a statutory obligation to disclose the inside information.

Company proprietor in court for bribery over laundry services
ICAC, 26-Nov-2015
Peter Yu Wing Woon, proprietor of Tingo Laundry, is alleged to have offered a bribe to a then operation manager of South Pacific Hotel in Wan Chai.

And much more besides...
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