SECURITIES AND FUTURES COMMISSION
證券及期貨事務監察委員會
X v SFC
HK Court of First Instance, 17-Apr-2012
Chaoda (0682): MMT proceedings against Chairman and Executive Director
Company announcement, 30-Sep-2011
Under the Listing Rules, these proceedings should have been announced when they were first known to the directors concerned. The referral by the Financial Secretary to the MMT was dated 25-Jul-2011, so they knew by then. The SFC also knew: they investigate cases before referring them to the Financial Secretary. The SFC should have informed the Stock Exchange which would then require the company to announce the FS's referral to the MMT. What we have here is a failure to communicate.
Real Gold (0246) v SFC: costs
SFC, 8-Sep-2011
During the hearing, RGM withdrew its application for judicial review. RGM has obtained the SFC's assurance that it will employ the same sealing protocol in relation to back-up copies of data seized from the IT service provider as it did with the originals seized from the company's office, which will give RGM the opportunity to claim legal professional privilege.
SFC's neighbours will celebrate
The SFC, to the relief of fellow tenants, is reportedly set to move out of Chater House in June 2013. We ask why the police and their masters have been so reluctant to enforce the Noise Control Ordinance against protestors, and what tenants and passers by at their reported new home can look forward to. The landlord, controlled by HK's biggest tycoon, has 7 listed companies and 2 REITs in the group, all ultimately regulated by the SFC, so there is a risk of future perceived conflicts of interest which it would have been better to avoid. (22-Aug-2011)
Nine Dragons spotlights SFC regulation of CRAs
Today's plunge in Nine Dragons (2689), sparked by a withdrawal of a credit rating, raises questions about the new SFC regulations of Credit Rating Agencies. CRAs have privileged access to inside information and a contractual relationship with issuers. The SFC should prohibit them from publishing price-sensitive news during market hours. (Updated 19-Jun-2011) (14-Jun-2011)
Retail trader Mr Liang Lin acquitted of market manipulation
SFC, 28-Mar-2011
Cardlink is now named Phoenitron (8066). We note that total volume in the stock that day was 6.455m shares and turnover was $6.825m, an average price of $1.057, which was 45.0% above the previous close. The stock reached a high that day of $1.10 and closed the day at $0.65. Perhaps the more salient question is whether or not this kind of arrangement amounts to a fraud on the Immigration Department.
The SFC and prospectus liability
The SFC complained yesterday about deteriorating standards of sponsors' work in listing applications. Some of the blame lies with the SFC for abandoning in 2006 proposals to reform the law on prospectus liability. Until investors can effectively sue for a fraudulent prospectus, creating a stronger deterrent, the situation is unlikely to improve. (27-Jul-2010)
Manipulation mania
What are markets really for? Does the law on market manipulation, and its enforcement, create unreasonable expectations from investors about the information in market prices, volumes and order queues? We say it does. It is time for the Government and SFC to review their approach and reset public expectations. We also look at shill bidding in auctions. (12-Jul-2010)
Dr Wise issues dumb advice on rights issues
SFC, 25-May-2010
He says "but if you decide to let your rights lapse, then you will not need to take any action unless you want to sell your rights in the market." - duh, and why would you give something up rather than sell it for value? Let's change that to "If you decide not to take up your rights, then you should sell them in the market for any value you can get" and we might add "because the company will not do this for you. This is not like the UK, where companies are required to protect inactive shareholders by selling unexercised rights and sending them the proceeds".
Shek Lai San v SFC & HKMA
HK Court of First Instance, 30-Apr-2010
A Lehman Minibond victim unsuccessfully seeks leave for judicial review of the SFC and HKMA's decision to reach a settlement agreement with 15 banks.
The Post Office Investment Fund
Following yesterday's Audit Commission report on Hongkong Post, we look at the potential closure of rural post offices, removal of its mail monopoly and universal service obligation, and its cash-rich balance sheet and prime property. We also discuss the Government's tendency to stash pots of money away in different bodies rather than pass recurrent spending through the budget and the Legislative Council and manage its liquid funds centrally. (22-Apr-2010)
Proposed law sells HK short
If the Government consulted the public on a speed limit of 50km/h, then set it at 4km/h, wouldn't you wonder why? That's what the SFC has done after a consultation which from the outset was a solution in search of a non-existent problem. We call on the SFC to withdraw or amend its proposed filing requirements for 0.02% short positions and to focus with Government on filling the gap in the existing law by requiring public disclosure of short positions, including derivatives, at the same level as long positions, currently 5%. What do you think? Take our poll! (7-Mar-2010)
Rusal and the retail investor
(Updated 21-Dec-09). Reports say the SFC wants to prohibit the retail offering of Rusal and/or require the company to adopt a massive board lot for trading in its shares. Both measures would in fact increase the risk for retail investors, as we explain. The SFC should stick to the principles of a disclosure-based market and focus on legislative reform to increase the deterrent to prospectus fraud. (20-Dec-2009)
"C", "E" and "F" v SFC
HK Court of Final Appeal, 11-Dec-2009
C=Lu Ruifeng, "E"=Clear Excel Ltd, "F"=Kayden Ltd
HKEx: no reform to placing mandate...or anything else
HKEx's decision to leave the Rules on dilutive issue mandates unchanged is an insult to investor opinion, expressed by their voting on this matter. Since the 2008 blackout saga, the Government and its regulators are unwilling to upset the local business elite with reforms. As China heads for an international currency, the tycoons are not as important to the market's future as HKEx seems to think they are. (27-Oct-2009)
SDI breaches go dark at SFC
The SFC has quietly stopped disclosing details of successful prosecutions for failure to disclose shareholdings, including the name of the offender and the company involved. This is important information for investors, and we urge them to reinstate it. We also look at its questionable and inconsistent policy of redacting names from historic press releases. (6-Oct-2009)
SFC v "C","D","E" and "F"
HK Court of Appeal, 17-Jul-2009
"C"=Lu Ruifeng, "D"=Tin Yin Kwan, "E"=Clear Excel Ltd, "F"=Kayden Ltd
No futures for foreigners - SFC
The SFC, under pressure from vested interests, has put on indefinite hold proposals to allow remote participants (overseas brokers and traders) in HK's futures market, leaving it looking protectionist and backward. (11-Jul-2009)
SFC v "C","D","E" and "F"
HK Court of Appeal, 22-May-2009
"C"=Lu Ruifeng, "D"=Tin Yin Kwan, "E"=Clear Excel Ltd, "F"=Kayden Ltd
SFC v "C","D","E" and "F"
HK Court of First Instance, 22-Oct-2008
"C"=Lu Ruifeng, "D"=Tin Yin Kwan, "E"=Clear Excel Ltd, "F"=Kayden Ltd
Lessons from Lehman Minibonds
Webb-site.com looks beyond the Lehman minibonds fiasco and proposes three steps to reform the regulatory system for the sale of financial products. Without such reforms, there is a risk of either repeated crises or an outright ban on the sale of such products. Tell us what you think in our opinion poll. (20-Oct-2008)
Building a Value Proposition for HK
HK Chief Executive Donald Tsang recently convened an Economic Summit of 33 people, which spawned 4 focus groups, including one on financial services, which in turn produced 3 working groups, one of which, headed by HKEx government-appointed director and Chairman Ronald Arculli, has sought submissions on the markets. This is our submission. (4-Oct-2006)
The SFC Chairmanship
The Government is proposing to create a non-executive, token-payment Chairmanship at the SFC. In a submission invited by the Legislative Council's Panel on Financial Affairs, we argue that this would be dangerous and wrong in principle. (20-Dec-2004)
Listing Chaos
We review a chaotic month on the Government policy front in general and the HKEx in particular, and look at the broader issues surrounding the current proposals, or rather the lack of them. Merging two issuer-dominated Listing Committees together will not address the needs of investors, while the Government ducks the real problem of having a for-profit toothless regulator rather than SFC regulation and statutory backing for the Listing Rules. (28-Jul-2002)
Government Stock Market Intervention
A commentary on the Hong Kong government's controversial intervention in the local stock market, which began on 14-Aug-98. This article covers our various activities in this area in 1998-1999, before Webb-site.com was launched in Nov-1999. (31-Jan-1999)
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