Tuesday 6th September 2016
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NEW ARTICLE
Submission to SFC-HKEX consultation on listing regulation
These are our views on SFC-HKEX proposals to reform regulation of
listings and listed companies. If you are an investor who cares about the future
of HK's markets, please submit your support. The proposals are better than the
status quo, but a political compromise on the 2003 Expert Group recommendation
to transfer regulation to the SFC, and that should be Plan B. (6-Sep-2016)
RECENTLY ON WEBB-SITE
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
Union Asia (8173): unauthorised disposal of property
Company announcement, 4-Sep-2016
The company
claims that its subsidiary surrendered a property for S$5.62m in April and the
company didn't know until 2-Sep.
Trio in
court over HK$450k false claims for lost registered mails
ICAC, 2-Sep-2016
After 1,531 claims each for
a lost ball pen, HK Post began to suspect something was wrong. There's no
fooling them!
Webb on
"Backchat" re Legislative Council elections
RTHK, 2-Sep-2016
Freeman (0279) to buy People Securities Co Ltd
Company announcement, 1-Sep-2016
You can never own too many brokers.
Freeman also controls Freeman Securities Ltd.
SFC fines
BNP Paribas Wealth Management HK$4m for stiffing clients
SFC, 31-Aug-2016
The stiffees will now get a
refund of HK$9.5m in excess charges.
Imagi (0585) to buy stockbroker John & Wong Securities Co Ltd
Company announcement, 30-Aug-2016
Another
listed company in what we call the "Chung Nam Network" gets into broking.
Union Asia (8173) buys boat from Lam Kai Tai for HK$19m IOU, rents it out
Company announcement, 25-Aug-2016
The
unnamed cruiser is 28.04 metres long. Vendor Lam Kai Tai is the Chairman of
Enterprise Development (1808), another company in what we call the "Chung Nam
Network".
L & A (8195): 1.6bn options exercised | CCASS
deposits
Company filing, 24-Aug-2016
The holders of these 10-year options all forfeited the time value and
exercised them on the day that they were announced, 22-Aug, having been
purportedly offered or granted on 22-Jul. The new shares were probably deposited
into CCASS on 24-Aug and 25-Aug, via FP Sino-Rich Securities & Futures Ltd
(1.4bn) and Emperor Securities Ltd (0.2bn).
SFC suspends
Ku Yuen Leung, ex-BOCOM, for 18 months
SFC,
23-Aug-2016
Our take: Mr Ku had deduced that an algorithmic liquidity
provider would take his warrants if he bid for the related shares. Bids cannot
be "artificial" as they are binding and capable of being hit. Order queues are
not measures of demand and supply, they are just a series of binding bids and
asks. A lot of demand or supply is not displayed, including that which buys from
the best ask or sells to the best bid. The philosophy behind these prosecutions
is flawed; the SFC should not encourage people to expect a directional price
signal from the order queues.
HKICPA
bans Steve Au Yeung Keung for 3 years | Cooking
with gas
HKICPA, 23-Aug-2016
This
case relates to fraudulent transactions in 2003/4 by Grand Field (0115) which
Webb-site exposed in our 2004 article "Cooking with gas". Mr Au Yeung admits
that he lied to the Stock Exchange and participated in the sham disposal of the
bogus project. Since 2006, he has been the Company Secretary of China Energine
(1185). Our take: he cannot be trusted with the affairs of a listed company and
they should fire him.
And much more besides...
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