Tuesday 9th June 2009

Dear Reader,

Just a little piece that describes a typical incident in Hong Kong's economic mismanagement:

Rent distortion in container truck game
The Government moved the goalposts and created uncertainty in future tenders of short-term land tenancies by cutting rents by 20% for 6 months at a cost to taxpayers of HK$166m. It serves them right that they are now fielding complaints from car park users who realise that the tenants were the main beneficiaries.

Recently on Webb-site.com

Tycoons gain in Listing Committee shake-up
Well what did you expect after the blackout saga? The changes are not subtle, and further diminish the outlook for corporate governance reforms in the Listing Rules. We take you through the changes and the likely shape of the committee until 2012 and its leadership until 2015.

The HKICS blackout study
In a side-piece to our story on the Listing Committee, we look at the flaws in the study commissioned by the Institute of Chartered Secretaries after they opposed the backout extension, from none other than the brother of the Secretary for Financial Services, whose bureau lobbied to overturn the rule.

Suitability in a disclosure-based market
SEHK has announced possible waivers of the profit criteria. We don't object, but the profit criteria should be scrapped. It has no place in a disclosure-based market, and is no substitute for better accounting disclosure requirements and effective legal remedies and deterrents, all of which HK still sorely lacks. We make proposals for those.

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