Wednesday 13th April 2011

Dear Reader,

NEW ARTICLE
Traffic Truths
The Government's budget proposal on private car First Registration Tax is based on a false premise, and will not achieve its stated objective of congestion reduction. Our research shows that despite higher ownership, private cars occupy less of the roadspace than they did in 2000. We call for a fundamental review of road transport policy and make proposals to achieve a reduction in congestion and road traffic pollution. (13-Apr-2011)

RECENTLY ON WEBB-SITE
HKEx adopts VAMPIRE mandate
Webb-site is pleased to note that HKEx, seeking its first general mandate in 7 years, is now complying with VAMPIRE limits of 5% issued for cash and a maximum 5% discount. Having set an example, SEHK should now amend the Listing Rules and bring the market up to international best practice. HKEx has also unbundled amendments to the Articles of Association, and is not repeating last year's fiasco. (29-Mar-2011)

Response to SEHK on Corporate Governance Consultation
Webb-site publishes a detailed response to the Exchange's consultation on the corporate governance rules and code, including recommendations for fundamental reform and the results of the opinion poll on INEDs. (25-Mar-2011)

IN OTHER NEWS
Webb on "Backchat" re property
RTHK, 12-Apr-2011

Winnie Lo Wai Yan v HKSAR
HK Court of Final Appeal, 7-Apr-2011
The solicitor jailed for "consipracy to commit maintenance" is granted bail pending her final appeal.

LCQ: the competitiveness of the Hong Kong stock exchange
HK Government, 6-Apr-2011
Comment: nothing prevents a "flash crash" in HK, and indeed we had a mini-version of this in HSBC on 9-Mar-2009. There are no circuit-breakers on SEHK. Regarding trading spreads, HKEx U-turned on that in 2007 and there has been no progress since then.

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