Friday 19th October 2018
Dear Reader,
What better way to celebrate the 31st anniversary of Black Monday?
NEW ARTICLES
The
Huarong-CMB network: 26 stocks not to own
In our first circuit diagram since the infamous Enigma Network, we
examine the overlapping networks, bubbles and funding surrounding 26 HK-listed
companies that your portfolio would probably do better without. (19-Oct-2018)
Huarong and China Singyes Solar Technologies (0750)
CSST, now suspended pending disclosure of its financial position, has
failed to disclose in its reports the interest of Huarong Int Fin (0993), which
claims to have a 15.09% interest, including 8.04% purchased from an unknown
vendor in Dec-2017 and security over a further 7.05% pledged to it, presumably
to secure a put option that it claims to have been granted. By
whom? (18-Oct-2018)
RECENTLY ON WEBB-SITE
The
Princeton economist and a plot in Sheung Wan
A tiny plot of prime HK land left behind in a company dissolved in 1972
is now a potential windfall in a redevelopment of its surroundings. For 54
years, Professor Gregory Chow never knew he had a stake in it. (8-Oct-2018)
China
First Capital (1269) and a questionable joint venture
Webb-site finds serious problems with CFC's statements about a GBP60m
UK start-up joint venture with a BVI company, the owner of which is not
disclosed, which has only partly paid for its share of the JV. (7-Oct-2018)
Huarong
and the Chung Nam Network
Webb-site can reveal another SFC investigation underway involving
dealings in Pak Wing (8316). The manipulation of this GEM bubble reveals another
connection between China Huarong (2799) and what we call the "Chung Nam
Network". The more we scrutinise Huarong, the worse it looks. Will the State end
up bailing out the bailer? (3-Oct-2018)
IN OTHER NEWS
Freeman (0279) renegotiates US$99m convertible held by 51% subsidiary of China
Huarong (2799)
Company announcement,
18-Oct-2018
This comes 20 days after they renegotiated the other
HK$429m CB held by Huarong Inv (2277) which is also a subsidairy of China
Huarong. The conversion price of both is reduced from $0.425 to $0.065.
SFC launches report-a-crook form
SFC,
18-Oct-2018
Don't hold back! Good to see that new logo, too.
Celebrating the 20th anniversary of Peregrine's collapse.
Censure of NNK (3773) and various directors
SEHK, 15-Oct-2018
Lai Xiaomin, ex-Chairman of Huarong (2799) expelled from Party (in Chinese only)
CCP Central Commission for Discipline Inspection,
15-Oct-2018
Next comes the formality of prosecution.
Small house, big issue | Fixing
the Small House Policy
South China Morning
Post, 14-Oct-2018
David Dodwell mentions the proposals we published
in Sep-2014 in "Fixing the Small House Policy". We propose a reverse tender to
extinguish a quota of claims of village men descended on the male line from 1898
(and their unborn male descendants or sons under 18 years old). We now call this
the Buyout of Indigenous Rights To Houses (BIRTH) scheme. At the same time, the
policy should be amended so that all new land leases for village houses can only
be transferred to other indigenous men, and cannot be upgraded and flipped into
the open market.
Concentration warning in Zhaobangji Props (1660)
SFC, 11-Oct-2018
The top 20 holders have
90.78%.
Webb on
"Backchat" re Policy Address
RTHK, 11-Oct-2018
Defeated
LegCo candidate Leticia Lee See Yin charged with engaging in corrupt conduct
over donations
ICAC, 10-Oct-2018
HK
Settlers Housing Corp financial statements, 31-Mar-2017
Company filing, 10-Oct-2018
The company is
limited by guarantee with 7 members. All the 7 directors are associated either
with Henderson Land (0012) or Bank of East Asia (0023), which is also its banker
and manager of HK$484m of securities. The audit report is qualified because the
firm fails to revalue its investment properties, which are held at $1. It owns
the Tai Hang Sai Estate in Shek Kip Mei, and in today's policy address, that is
up for redevelopment. The land was granted in 1961 at a concessionary premium
and the 1600+ flats are leased at below-market rates.
Peak Tramways Co Ltd gets Peak Tram operating rights until 31-Dec-2035
HK Government, 10-Oct-2018
The firm is owned
by HK & Shanghai Hotels (0045). There does not appear to have been any tender
for the contract. This extension is granted less than 3 years after the last
10-year extension was granted on 2-Dec-2015, just 29 days before expiry. The
company will now build a "temperature-controlled queuing and waiting area" for
1300 passengers at the lower terminus, and increase the capacity from 120 to 210
passengers per trip.
And much more besides...
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David M. Webb
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