Monday 27th April 2020

Dear Reader,

COVID-19: where do we go from here?
HK is essentially clean: data indicate the latest community transmission was 24 days ago. A potential travel network of clean quarantined countries is emerging, but many others are pursuing a mitigation approach, flattening the curve but leading to the likely premature death of 0.5% of their populations unless interrupted by a vaccine or treatment. We find lessons to be learned from HK's early mistakes. HK should maintain its quarantine and its people should now be free to enjoy their city. (27-Apr-2020)

CPG interference: HK's Ministry of Truth on Article 22
In an act straight out of George Orwell's 1984, the HK Govt's news agency has been caught modifying and backdating a press release to comply with the Central People's Government's Liaison Office view that it is not a CPG department and not subject to Article 22 of the Basic Law. It actually makes no difference: if the CPG itself interferes in matters which are within HK's autonomy under the Basic Law, then it undermines "Two Systems". (20-Apr-2020)

HK employers must eat this free lunch
An economically illiterate leadership has decided to spray HK$80bn at HK's economy, benefitting employers who had no intention of making lay-offs, by paying the firms up to HK$54k per job. Some firms have even prospered during COVID-19. It's a wasteful way to return hoarded reserves to the economy, but all companies now have a legal duty to shareholders to eat this free lunch. They should resist any Government pressure to not collect it. (9-Apr-2020)

Add New Energy (2623) cancels "bonus" issue of sharesProposed bonus issue
Company announcement, 23-Apr-2020
It has a share price of $0.05. Any scrip issue or split which would result in a price below $1 is prohibited by Listing Rule 13.64A. Also, the directors were either stupid or lying when they said that they believed the bonus issue would "be a return to the long-term support of the Shareholders". It just costs money to cut the pizza into smaller slices.

Couple admit HK$330k salary fraud over public housing cleaning
ICAC, 23-Apr-2020
Mr Yuen clocked in and out using face-recognition at the start and end of each shift, but never did any work inbetween. Like some legislators we know.

Censure/criticism of China Ding Yi Feng (0612) and directors
SEHK, 22-Apr-2020

And much more besides...
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David M. Webb