Wednesday 17th August 2016

Dear Reader,

Time to crank up the machine again!

NEW ARTICLE
A sordid electoral affair
The HK Government, via its Electoral Affairs Commission, has tarnished HK's reputation for free and fair geographic elections for half of its Legislative Council, just to exclude a few candidates who were previously on the political fringe. There is nothing inconsistent between pledging to uphold the constitution and seeking to change it, and the Government now risks the courts overturning the election results. We also explain the fragmentation caused by HK's version of the party list system which has now reached epic proportions. (17-Aug-2016)

IN OTHER NEWS
Webb on CNBC re listing regulatory reform
CNBC, 16-Aug-2016

Concentration warning in Season Pacific (8127)
SFC, 12-Aug-2016
The top 20 shareholders have 99.9% of the company at 1-Aug-2016.

SFC bans and fines Lam Chun Yin & Yeung Chok Cheong, ex-Huarong Intl Securities
SFC, 10-Aug-2016

Concentration warning in Wang On Properties (1243)
SFC, 9-Aug-2016
20 shareholders own 97.24% of the company.

Union Asia Ent (8173): Mr Yeung Wing Yee breaches Takeovers Code
Company announcement, 8-Aug-2016
He's bought 32.87%, more than the 30% bid trigger, and his "legal adviser" has confirmed that he has no intention to make a general offer. The SFC is on the case.

Hao Tian (0474) buys stockbroker Paul Securities Ltd
Company announcement, 8-Aug-2016
The price mentioned in the annual report was net asset value plus HK$11m.

Chang Pui Yin & others v Bank of Singapore Ltd
HK Court of First Instance, 8-Aug-2016
The elderly couple win their case against the Bank (formerly ING Asia Private Bank) for accumulator losses. Damages will be assessed separately. The bank and the relationship manager, Yvetti Li Chau Kwan-siu, are heavily criticised in this judgment. In our view, the SFC should now take action against them.

MMT finds no insider dealing in Warderly shares
SFC, 5-Aug-2016
We don't disagree with the finding, but we annotate errors in the report regarding the outcome of an open offer. The MMT finds that when the duo sold shares in 2007, the information was no longer material, as the company was publicly known to be in difficulty and the stock was trading on its shell potential. Also, the alleged loss avoided becomes a profit avoided if the open offer had been taken up. Incidentally, Warderly is now known as Fullshare (0607) and in our view it is a bubble stock on 9x NAV, part of which is shares in another bubble stock, Zall (2098) which trades around 4x NAV.

And much more besides...
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