Red storm gathering

The storm had always been here. The shorts are having a party.

Article on the garbage festering HK exchange.

And a breaking story on the ICAC arresting the joint chairmen of Sun Hung Kai Properties, the biggest property company in HK with a market cap of HK$260b (that's after today's drop of 12%).

First Natural: Special Deal for a thief

Can someone who has stolen from and destroyed a company still be a creditor? The thief is still sitting on the stolen subsidiaries in the mainland while the SFC .....twiddles their thumbs.

"Based on books and records available to the Directors and the Provisional Liquidators, Mr. Yeung is a potential creditor under the Scheme. As at the date of this announcement, Mr. Yeung has not filed any claim to the Provisional Liquidators. As under the Scheme, subject to adjudication and adjustment, it

is estimated that approximately 2,500,000 Creditors Shares with the amount of approximately HK$9.7 million as the Cash Settlement together with apportioned part of the realisation of the assets of the Excluded Companies, if any, will be issued and paid by the Company to Mr. Yeung, who is interested in approximately 35.13% of the issued share capital of the Company before the Capital Restructuring, to settle the indebtedness of approximately HK$68 million owed to him. The settlement with Mr. Yeung under the Scheme will constitute a special deal under Note 5 to Rule 25 of the Takeovers Code"

K&L Gates Partner steals $4m

"The money that I stole was used to pay my gambling losses that I have accumulated over the years. I was using one 'escrow' to cover the other. I don't know what the devil got into me. Sorry."

Standard Chartered Bank

One of the best performing banks. Focusing on Asia, Africa and the Middle East, however,..

"Judging from its loan-loss provisioning, StanChart, the second largest bank in the UK by market value, clearly does not see risk building in the system for now.

"StanChart set aside 0.28 per cent of its outstanding loans as loan-loss provisions at the end of 2011, against 1.2 per cent at HSBC and 1.2 per cent at Barclays, according to company figures and Thomson Reuters Starmine."

on the consumer banking front, StanChart has said it will continue to expand into the riskier unsecured lending space, which now makes up a relatively low 17 per cent of its total consumer loan book but contributes for an outsized portion of its overall income."

India has dropped into the waste basket, now ...

"Evidence abounds in Asia that credit quality is expected to worsen soon, however. In South Korea, one of StanChart's biggest markets, average household debt has already exceeded that of the United States just before the 2008 sub-prime crisis."

SFC needs more dimsum

These useless morons with a $1b budget and reserves of $7.4b are out to hire... 7% more useless morons.. Maybe they should start cleaning out the numerous fraudulent companies on the HKex.

"The reserves currently stand at HK$7.4 billion and are expected to rise to HK$7.6 billion by the end of March 2013.

"Under the law, the government and the SFC have agreed that whenever SFC reserves reach a level equivalent to two years' of its expenses, it should suspend or reduce the transaction levy," said Chim Pui-chung, lawmaker for the financial services sector. "The SFC reserve is currently equivalent to seven years of its annual spending, but its budget doesn't mention cutting its levy or other charges."

The current reserves are 7.3 times the SFC's HK$1.01 billion budget for the current fiscal year which ends in March. They could support the SFC's expenditures for 5.4 years, based on its estimated HK$1.36 billion budget for the new financial year which starts on April 1.

"The securities regulator's budget is unacceptable, as it is against the law and is unfair to investors," said Chim. "Why does it continue to ask investors to pay when it is so rich already? The financial secretary should reject this SFC budget as it is against the public interest."

HK Electric Utilities shaken up

The HK government is having second thoughts about allowing the local utilities to get 9.9% ROA from 2008 to 2018 (previously 13.5%). Faced with the usual outcry when the power companies propose rate rises, they conveniently blame the power companies, however it appears the government will move towards changing the Scheme of Control which explains the current weakness in Power Assets (0006) price.

Eudrey Eu (Legislative Councillor, HK Island geographic constituency) has produced this...

"

Creating a sustainable and open electricity market

Hon Audrey EU to move the following motion:

(Translation)

That, given that the Government's signing of the 10-year Scheme of Control Agreements ('SCAs') with the two power companies in 2008 has extended the monopolization of the electricity market by the two power companies and sowed the seed of misfortune that the two power companies can persistently and significantly increase tariffs to 'maximize profits' regardless of public sentiments, for the well-being of the public, this Council urges the Government to:



(a)	require the two power companies to exhaust all room for tariff reduction, so as to lower the rates of tariff increase this year to the lowest levels;
(b)	immediately activate the mechanism for interim reviews, and make public the relevant information and accounts, so as to facilitate public participation;
(c)	launch a review of the two power companies' development plans in accordance with the provisions of SCAs, increase the transparency of the development plans, and require the two power companies to revise their investment plans, revalue their assets, compress costs and rationalize their accounts;
(d)	expeditiously materialize the interconnection between the networks of the two power companies and segregation of the generation sector from the network sector, and introduce third parties to bid for the supply of electricity grids;
(e)	encourage the development of distributed renewable energy power generation facilities and networks, and provide technical support and concessions for connection to electricity grids; and
(f)	adopt all measures to create a low-carbon electricity market which promotes sustainable development and operates with greater competition, openness and fairness, so as to break new grounds in the electricity market. "

S&P cuts Chaoda to 'CCC', keeps rtg on watch neg

6 months from end of financial year and no annual report yet... setting off a vicious cycle of illiquidity

"-- We believe payment acceleration of Chaoda's convertible bond is imminent, and we have insufficient information on the company's current offshore cash balance and other potential sources of liquidity.

-- We believe the company has limited financial flexibility and limited ability to access capital markets.

-- We are therefore lowering the corporate credit rating on Chaoda to 'CCC' from 'B-'. We are also lowering our Greater China credit scale rating on Chaoda to 'cnCCC' from 'cnB'.

-- The ratings remain on CreditWatch with negative implications."