Tuesday 30th October 2012

Dear Reader,

NEW ARTICLES
Some-Buyer's Stamp Duty
We examine HK's proposed discriminatory stamp duty on companies and non-permanent residents who buy residential property, its questionable constitutionality, its negative impacts on social harmony and the redevelopment market, and the proposed SSD 2.0. (30-Oct-2012)

RECENTLY ON WEBB-SITE
Parker Randall's HK track record
We reveal the censored names in yesterday's HKICPA announcement, and look at the awful losses experienced by investors in the HK-listed audit clients of Parker Randall CF (H.K.) CPA Ltd. (27-Oct-2012)

Cashing up at Next Media
If Next Media (0282) completes the sale of its Taiwan units, it will have a profitable HK business and net cash of about HK$4.4bn with no use for it. Rather than drag shareholders into a new business as City Telecom (1137) has done, we expect Next to do the right thing and distribute the proceeds in a special dividend. The potential payout is $1.79 per share, and majority shareholder Jimmy Lai will get 74% of that to use as he pleases. (26-Oct-2012)

Air China's balance sheet worries
We look at the highly-geared balance sheet of Air China, the bizarre and unfinished mini-subscription by its parent launched 6 months ago, and the likely need for a much larger equity financing if it is going to run on free-market principles, which in turn has implications for Cathay Pacific's 20% stake. (24-Oct-2012)

IN OTHER NEWS
Government re-appoints MTRC chairman, extending term to 12.5 years
HK Government, 29-Oct-2012
Whatever happened to the 6-year rule for Government appointments? Before becoming Chairman in 2003, Mr Ch'ien was an "independent" director since 1998, elected by Government as majority shareholder. Then there is Allan Zeman Chairing Ocean Park (now in an 11-year term), and Anthony Wu Chairing the Hospital Authority (now in a 9-year term, and having been on the board since 1999).

Pass it on!
This free newsletter goes to over 20,000 practitioners, issuers, regulators and investors in Hong Kong's markets. If you enjoy Webb-site, then please invite a friend to find out what they are missing and subscribe! Visit our archives, and do your homework before you invest.

Remember that, apart from our occasional articles, you can follow our daily updates on HK events via RSS, Twitter, or Facebook.