Monday 17th December 2018

Dear Reader,

NEW ARTICLE
Brexit and customs from a HK perspective
Theresa May has pursued 2 conflicting objectives: leaving the customs union; and keeping the UK/EU customs border open. HK people are used to a customs boundary with the rest of China, with no impact on sovereignty. Similarly, Northern Ireland should choose between remaining in the EU customs union post-Brexit with a boundary down the Irish Sea, or leaving the EU customs union and having a hard border with the Republic of Ireland. Only then can the UK or GB have independence in trade negotiations with other countries and deliver a proper Brexit. (17-Dec-2018)

IN OTHER NEWS
Mainlander charged with offering CCB (Asia) manager HK$500-1500 bribe
ICAC, 13-Dec-2018
One country, two systems.

Webb on "Backchat" re the HK property market, rates and taxes
RTHK, 13-Dec-2018

Statement on Leung Chun Ying, Holden Chow Ho Ding & UGL
ICAC, 12-Dec-2018
Apparently the ICAC Operations Review Committee was able to receive a report from the ICAC and legal advice from the DoJ and endorse it all within one day.

Censure of L&A (8195) and various directors
SEHK, 11-Dec-2018

China Huarong (2799): Party like it's 1949
Company announcement, 10-Dec-2018
"The Party Committee shall play the core leadership role...The chairman of the board of directors shall concurrently serve as the secretary of the Party Committee". Good to see the ongoing deepening of market reforms and opening up!

SFC fines SFM HK Management Ltd HK$1.5m for accidentally short-selling bonus shares of Great Wall Motor (2333)
SFC, 6-Dec-2018
After Great Wall Motor (2333) went ex a 2:1 bonus issue, SFM accidentally sold its bonus shares before they were issued. This is another reminder that bonus issues in effect temporarily delist part of the company, in this case, 2/3, because only the pre-bonus shares are tradeable between the ex-date and the delivery date. In September, the SFC fined Huatai Financial Holdings Ltd HK$800k for doing the same thing on the same bonus issue.

HKICPA fines Miss Kung Wing Ting and her firm HK$40k jointly
HKICPA, 5-Dec-2018

CMBC Capital (1141) lends another HK$150m
Company announcement, 30-Nov-2018
They don't name the borrower. We can tell you it is China New Higher Education (2001), to which CMBC has already lent HK$340m. CMBC has also lent CNHE's controlling shareholder HK$100m. On the new loan, CMBC vaguely states the interest rate of "5% to 10%" with an arrangement fee of "1% to 5%". In our view this fails to disclose sufficient details of the Disclosable Transaction.

SFC takes H&H (1112) and its Chairman to MMT over late disclosure
SFC, 29-Nov-2018
The SFC alleges that the respondents withheld Inside Information for a month until a profit warning on 23-Jul-2015.

Freedom and the future of China: Webb's talk at HKU on 30-Oct-2018 (video) | Text of speech
YouTube, 29-Nov-2018

Ex-Hospital Authority doctors charged with misconduct in public office and theft
ICAC, 28-Nov-2018
All of them are opthalmologists. They allegedly referred public patients of Caritas Medical Centre to a private clinic operated by 2 of them who are brothers.

Landing (0582) Chairman Yang Zhihui "has resumed his duties"
Company announcement, 26-Nov-2018
After 3 months AWOL, Mr Yang has "explained that he has been assisting the relevant department of the [PRC] with its investigation". No word on where he is or whether the HK SFC's freeze of his brokerage accounts is still in effect.

And much more besides...
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David M. Webb
Editor, Webb-site.com