Monday 6th August 2018

Dear Reader,

Another Webb-site exclusive:

Revealed: the USA has the longest land lease in China
Breaking through false search results at the HK Land Registry, Webb-site finds that the USA in 1960 was granted a unique option to purchase the freehold of its HK Consulate site. In 1999, Tung Chee Hwa's government agreed to convert this to a 999-year lease and remove the restriction on sale for only HK$44m, granting the USA a potential windfall and the longest leasehold land in China. (6-Aug-2018)

HK Government invasion of the housing market
HK Chief Executive Carrie Lam has ended her first year with a new set of interventions, building on the crumbling foundations of her predecessors. It's time for a major policy rethink. A government's role is to ensure that people have a home, not that they own one. And the government doesn't need to own homes either. (2-Jul-2018)

China Investment Dev (0204): CEO Zhang Xuming suspended: suspected irregularities
Company announcement, 30-Jul-2018
Webb-site called this stock a bubble on 24-Sep-2015. It has lost 86.6% since then.

Ex-AXA financial consultant and an insurance broker charged with commissions fraud
ICAC, 30-Jul-2018
This is the second time around for insurance broker Li Ting Yuen, a former technical representative of CTHK Asset Management Ltd who was convicted in 2016 and jailed for 8 months on a separate charge. Fornia Chan Yin Fei is currently SFC-licensed at Sun Hung Kai Investment Services Ltd.

Liang Guosheng, brother of Chairman of Silver Base (0886), banned for 2 years for breach of Takeovers Code
SFC, 30-Jul-2018

Senior branch manager of AXA China Region and wife in court over commissions fraud
ICAC, 25-Jul-2018

Duo charged with bribery and illegal use of smartphones to obtain access to confidential information of HKDSE
ICAC, 25-Jul-2018
Modern Education is a 100% subsidiary of HK Education (1082) which featured in our "Enigma Network" last year. This is the second case involving Modern Education and alleged exam cheating, following charges filed against others on 4-Jun-2018.

Broker acquitted again of illegal short selling
SFC, 25-Jul-2018
Mr Wong Hung was acquitted 4 years ago by a different magistrate, David Chum Yau Fong. The SFC appealed to the Court of First Instance, which ordered a retrial, stating that "no reasonable magistrate…would have reached the same conclusion". This time, Magistrate Li Chi Ho reached the same conclusion.

Concentration warning in Southeast Asia Properties & Finance (0252)
SFC, 25-Jul-2018
This follows a complaint by Webb-site to the SFC on 10-Jun-2018. The top 22 holders have 92.2%. The company has applied to list a subsidiary, Hotel Benito Holdings Ltd, on GEM, distributing 100% of it to existing holders. We complained that this would create another listed company with identical concentrated ownership.

SFC bans Joseph Hsu Kar Hing, ex-Standard Chartered Securities, for 3 years
SFC, 17-Jul-2018
Comment: this probably relates to the China Forestry listing, jointly sponsored with UBS. Mr Hsu abandoned his appeal to the Securities and Futures Appeals Tribunal on 6-Jul-2018. The appeals by the two sponsors are set to be heard in March 2019.

And much more besides...
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David M. Webb