Wednesday 24th April 2019

Dear Reader,

Looks like we are making some progress!

HKMA, SFC announce "serious concerns" about transactions by mainland bank, HK subsidiary
And we think we know who they mean. The facts all point to entities featured in our network diagram last October. (24-Apr-2019)

SFC action is too little, too late for minority shareholders of Luxey (8041)
The SFC seeks disqualification of 2 ex-directors, but fails to seek any recovery of Luxey's HK$350m, 7-fold overpayment in an acquisition from an alleged nominee of then Chairman Joseph Lau. We first documented this case and numerous other suspicious transactions involving Luxey and other listed companies in a series of articles in 2012. This is the only one to see any action, and it falls far short of what is needed to provide a deterrent. (14-Apr-2019)

Chunli Medical (1858) tries to justify taxed bonus issue
Company announcement, 23-Apr-2019
This follows a Webb-site complaint to HKEX on 21-Feb-2019. It is against shareholders' interests to send them bonus shares when that triggers a tax on the CNY1 par value of the new shares. The tax is deducted from a cash dividend, costing H-share owners RMB0.1. For domestic owners it is RMB0.2, which, with tax on the dividend, is more than the dividend, so they get no net dividend and owe the company money which it now asks them to pay!

Patrick Wong Ka Yan v Nicole Cheung Ka Yu (fka Cheung Lee Hung)
HK Court of First Instance, 23-Apr-2019
Man v ex-mistress, whom he met when she was a masseuse. He wants back the Wanchai flat he gave/lent her which was "near to his office in order to facilitate his visits to her". She claims her son is his. In separate proceedings, he is contesting the jurisdiction of the court to compel him to take a DNA test.

Wu Yinong resigns as INED of Jiu Rong (2358) following his SFC sanction
Company announcement, 17-Apr-2019
This comes 3 days after Webb-site complained to HKEX that the company had failed to announce that Mr Wu had been sanctioned by the SFC for his due diligence failures while sponsoring an IPO at China Merchants Securities. The sanction was announced by the SFC on 27-Feb-2019, 7 weeks before. The question is, why do we have to point these things out to HKEX?

Mainlander charged with offering bribe to HSBC staff to open account
ICAC, 15-Apr-2019
One Country, Two Systems.

Deloitte and 3 partners fined over 2010-2013 audits of China Vision Media (1060, now Alibaba Pictures)
HKICPA, 15-Apr-2019

And much more besides...
Remember that, apart from our occasional artisanal articles, you can follow Webb-site Reports via RSS, Twitter or Facebook.

Pass it on!
This free newsletter goes to over 27,000 subscribers. If you enjoy the site, then please invite a friend to find out what they are missing and subscribe!

Copyright notice
This e-mail and small extracts of any article on the site may be freely quoted in any other publication but ONLY if attribution is given to

David M. Webb