Articles: Connected transactions
Censure/criticism of New Century Healthcare (1518) and 6 directors
SEHK, 11-Jun-2025
For racking up years of receivables from a connected person, which defaulted on payment.
SEHK, 11-Jun-2025
For racking up years of receivables from a connected person, which defaulted on payment.
Court orders ex-Combest (ex-8190) senior execs to make HK$192m compensation to shareholders
| Judgment
SFC, 2-Jun-2025
Webb-site filed a detailed complaint on this to the SFC on 21-Dec-2017. Justice Harris asks why criminal charges were not brought, as the case "clearly bears the hallmarks of a fraud". The SFC replies that it referred the case to the Police Commercial Crime Bureau on 20-Jun-2019. Over $293m of losses were caused to Combest, so the respondents appear to have made a net profit and avoided criminal charges.
SFC, 2-Jun-2025
Webb-site filed a detailed complaint on this to the SFC on 21-Dec-2017. Justice Harris asks why criminal charges were not brought, as the case "clearly bears the hallmarks of a fraud". The SFC replies that it referred the case to the Police Commercial Crime Bureau on 20-Jun-2019. Over $293m of losses were caused to Combest, so the respondents appear to have made a net profit and avoided criminal charges.
Sanction of 2 ex-directors of China Health Technology (1069)
SEHK, 28-May-2025
Regarding, amongst other things, undisclosed "loans" to the CEO's uncle, and the "sale" of a business with no money up front and no security for the payment. The buyer then defaulted.
SEHK, 28-May-2025
Regarding, amongst other things, undisclosed "loans" to the CEO's uncle, and the "sale" of a business with no money up front and no security for the payment. The buyer then defaulted.
Sanction of ex-Chairman of Silver Base (ex-0886) and his nephew, an ex-ED
SEHK, 22-Apr-2025
For pre-payments, including to a connected person, which looks like a cash-extraction exercise before liquidation.
SEHK, 22-Apr-2025
For pre-payments, including to a connected person, which looks like a cash-extraction exercise before liquidation.
Sanction of MIE (1555) and Chairman Zhang Ruilin
SEHK, 4-Mar-2025
For abusing the listed company to guarantee his personal debts.
SEHK, 4-Mar-2025
For abusing the listed company to guarantee his personal debts.
Sanction of 2 ex-directors of Xinyuan Property Management Service (1895)
SEHK, 20-Feb-2025
They were sanctioned 2 years ago in a previous case, but this time it's for failing to cooperate into another investigation of pledged time deposits to support bank loans to the controlling shareholder.
SEHK, 20-Feb-2025
They were sanctioned 2 years ago in a previous case, but this time it's for failing to cooperate into another investigation of pledged time deposits to support bank loans to the controlling shareholder.
Sanction of Regal Partners (1575) and 3 ex-directors
| 2nd announcement
SEHK, 9-Jan-2025
For an unauthorised, undisclosed guarantee in favour of a private company controlled by a connected person.
SEHK, 9-Jan-2025
For an unauthorised, undisclosed guarantee in favour of a private company controlled by a connected person.
SFC obtains 3-year disqualification of Au Yeung Ho Yin, ex-CFO of Fujian Nuoqi (ex-1353)
| Judgment
SFC, 18-Oct-2024
SFC, 18-Oct-2024
SFC secures first-of-its-kind settlement to compensate public shareholders of Combest (ex-8190)
SFC, 16-Sep-2024
Webb-site filed a detailed complaint on this matter with the SFC on 21-Dec-2017.
SFC, 16-Sep-2024
Webb-site filed a detailed complaint on this matter with the SFC on 21-Dec-2017.
Sanction of China ZhengTong Auto (1728) and 5 ex-directors
SEHK, 10-Sep-2024
For unapproved guarantees in favour of a property company owned by the Chairman's family.
SEHK, 10-Sep-2024
For unapproved guarantees in favour of a property company owned by the Chairman's family.
Sanction of Brilliance China Automotive (1114) and 3 ex-directors
SEHK, 27-Aug-2024
For a massive CNY53.4bn of unauthorised financial support to entities including its controlling shareholder, which led to losses of CNY8.3bn.
SEHK, 27-Aug-2024
For a massive CNY53.4bn of unauthorised financial support to entities including its controlling shareholder, which led to losses of CNY8.3bn.
Man gets 5 years' jail for conspiracy to launder HK$125m crime proceeds from fraudulent loans from Sunway (0058)
ICAC, 16-Aug-2024
Mr Lam Chung Kan (aka Lin Songgen) was a personal assistant of "a businessman" whom the ICAC now names as "Huang Ziqiang (黃自強)". We don't know who that is but perhaps the SFC and ICAC should try to find him.
ICAC, 16-Aug-2024
Mr Lam Chung Kan (aka Lin Songgen) was a personal assistant of "a businessman" whom the ICAC now names as "Huang Ziqiang (黃自強)". We don't know who that is but perhaps the SFC and ICAC should try to find him.
Man convicted of conspiracy to launder HK$125m crime proceeds from fraudulent loans from Sunway (0058)
ICAC, 1-Aug-2024
Mr Lam Chung Kan (aka Lin Songgen) was the "personal assistant of a businessman" who is not named.
ICAC, 1-Aug-2024
Mr Lam Chung Kan (aka Lin Songgen) was the "personal assistant of a businessman" who is not named.
Sanction of 4 ex-directors of Enviro Energy (1102)
SEHK, 17-Jun-2024
Including undisclosed connected transactions, being loans and guarantees which benefitted the then-Chairman and the CEO, and an undisclosed criminal prosecution in Shenzhen of the then-Chairman.
SEHK, 17-Jun-2024
Including undisclosed connected transactions, being loans and guarantees which benefitted the then-Chairman and the CEO, and an undisclosed criminal prosecution in Shenzhen of the then-Chairman.
Sanction of Link (8237) and 2 ex-Executive Directors
SEHK, 16-May-2024
Ngan Iek and Siew Pek To, who are brothers-in-law, used most of a bond issue proceeds to repay loans from Ngan rather than the stated purpose of redeeming old bonds, which then defaulted.
SEHK, 16-May-2024
Ngan Iek and Siew Pek To, who are brothers-in-law, used most of a bond issue proceeds to repay loans from Ngan rather than the stated purpose of redeeming old bonds, which then defaulted.
SFC obtains court order to disqualify Mr Chan Wai Shing, ex-CFO of Fuguiniao (ex-1819) for 2 years
| Judgment
SFC, 6-Feb-2024
Huge amounts of the group's money was pledged to support loans to the controlling shareholder in undisclosed connected transactions, resulting in forfeiture of CNY1.788bn. The stock was suspended on 1-Sep-2016 with a market value for the H-shares of HK$4.72bn and delisted in in Nov-2019.
SFC, 6-Feb-2024
Huge amounts of the group's money was pledged to support loans to the controlling shareholder in undisclosed connected transactions, resulting in forfeiture of CNY1.788bn. The stock was suspended on 1-Sep-2016 with a market value for the H-shares of HK$4.72bn and delisted in in Nov-2019.
Sanction of China Fortune (0110) and 8 directors
SEHK, 31-Oct-2023
For numerous undisclosed connected transactions.
SEHK, 31-Oct-2023
For numerous undisclosed connected transactions.
Sanctions against China Saite (ex-0153) and 10 directors
SEHK, 24-Aug-2023
For undisclosed loans to the Chairman, amongst other things.
SEHK, 24-Aug-2023
For undisclosed loans to the Chairman, amongst other things.
Crocodile (0122) minority shareholders veto HK$22m farmland purchase from controlling family
Company announcement, 27-Jul-2023
Well done! A far better use of spare cash would be to buy back shares, which trade around an 85% discount to net asset value of $1.07 per share. The deal came just months after a deep discount rights issue raised $42m.
Company announcement, 27-Jul-2023
Well done! A far better use of spare cash would be to buy back shares, which trade around an 85% discount to net asset value of $1.07 per share. The deal came just months after a deep discount rights issue raised $42m.
Sanction of Lisi (0526) but not any of its directors
SEHK, 19-Jul-2023
Somehow the company managed to repeatedly break the listing rules all by itself. The Exchange sent 3 earlier private warning letters from 2014-2016, so we wonder how often they keep the dirt private rather than make the market look even worse (which it is). The Exchange is for-profit, after all.
SEHK, 19-Jul-2023
Somehow the company managed to repeatedly break the listing rules all by itself. The Exchange sent 3 earlier private warning letters from 2014-2016, so we wonder how often they keep the dirt private rather than make the market look even worse (which it is). The Exchange is for-profit, after all.
SFC obtains disqualification orders against former directors of Luxey (8041)
| Judgment
SFC, 24-May-2023
Webb-site first blew the whistle about this wrong-doing back in 2012. It took the SFC until 2019 to bring this action. In our view, It was and is too little, too late.
SFC, 24-May-2023
Webb-site first blew the whistle about this wrong-doing back in 2012. It took the SFC until 2019 to bring this action. In our view, It was and is too little, too late.
Censure of CT Vision S.L. (0994)
SEHK, 23-May-2023
For undisclosed connected transactions and financial assistance to ex-director Jim Kan Hou Sek.
SEHK, 23-May-2023
For undisclosed connected transactions and financial assistance to ex-director Jim Kan Hou Sek.
Censure of Keyne (0009) and 6 directors
SEHK, 9-May-2023
For undisclosed connected transactions involving pledging of group properties as security for bank loans to a company owned by the controlling shareholder Zhu Boheng and his mum Qian Ling Ling, who is an Executive Director.
SEHK, 9-May-2023
For undisclosed connected transactions involving pledging of group properties as security for bank loans to a company owned by the controlling shareholder Zhu Boheng and his mum Qian Ling Ling, who is an Executive Director.
Sanction of Xinyuan Property Management (1895) and 4 directors
SEHK, 5-Dec-2022
The Exchange is having trouble keeping up with this company: the directors involved in these transactions to prop up the controlling shareholder have left the board, but another announcement on 15-Nov-2022 revealed yet more problems - a bunch of time deposits pledged to support bank loans to the controlling shareholder, and the stock, which was only listed in Oct-2019, is suspended again.
SEHK, 5-Dec-2022
The Exchange is having trouble keeping up with this company: the directors involved in these transactions to prop up the controlling shareholder have left the board, but another announcement on 15-Nov-2022 revealed yet more problems - a bunch of time deposits pledged to support bank loans to the controlling shareholder, and the stock, which was only listed in Oct-2019, is suspended again.
Sanction of 7 current/ex-directors of Christine (1210)
SEHK, 1-Dec-2022
For propping up a company owned by the then Chairman's sister with a de facto loan.
SEHK, 1-Dec-2022
For propping up a company owned by the then Chairman's sister with a de facto loan.
Censure of Mingfa (0846) and sanctions on 4 directors
SEHK, 27-Jun-2022
For numerous undisclosed and unapproved connected transactions and late results.
SEHK, 27-Jun-2022
For numerous undisclosed and unapproved connected transactions and late results.
Man charged with HK$125m money laundering involving loans from Sunway (0058)
ICAC, 11-May-2022
We note that the defendant, Lam Chung Kan (aka Lin Songgen), was also the purported owner of the subscriber in a 20% general mandate issue in March 2019. 4 weeks later, he flipped most of those shares to Oscar Chim Sai Yau. In today's charges, Mr Lam was the "personal assistant of a businessman" who is not named, and the alleged 5 bad loans from Sunway to the businessman occurred between 2015 and 2017. We have no idea who the businessman is.
ICAC, 11-May-2022
We note that the defendant, Lam Chung Kan (aka Lin Songgen), was also the purported owner of the subscriber in a 20% general mandate issue in March 2019. 4 weeks later, he flipped most of those shares to Oscar Chim Sai Yau. In today's charges, Mr Lam was the "personal assistant of a businessman" who is not named, and the alleged 5 bad loans from Sunway to the businessman occurred between 2015 and 2017. We have no idea who the businessman is.
Censure of Longrun Tea (2898) and directors
SEHK, 14-Jul-2021
For a major, undisclosed connected loan to a company controlled by the founding Chairman Mr Chiu Ka Leung and another ED Mr Jiao Shaoliang, amongst other things.
SEHK, 14-Jul-2021
For a major, undisclosed connected loan to a company controlled by the founding Chairman Mr Chiu Ka Leung and another ED Mr Jiao Shaoliang, amongst other things.
Censure/criticism of Winshine (0209) and various directors
SEHK, 12-Jul-2021
For various undisclosed tranasctions, including a loan to a company owned by the then-CEO. He and another ex-ED failed to cooperate with the SEHK investigation.
SEHK, 12-Jul-2021
For various undisclosed tranasctions, including a loan to a company owned by the then-CEO. He and another ex-ED failed to cooperate with the SEHK investigation.
Censure/criticism of Alltronics (0833) and 10 directors
SEHK, 28-Jun-2021
For varying the terms of a connected transaction without seeking further independent shareholders' approval.
SEHK, 28-Jun-2021
For varying the terms of a connected transaction without seeking further independent shareholders' approval.
Censure of Baytacare Pharma (ex-8197), directors & supervisors
SEHK, 8-Jun-2021
For multiple undisclosed connected transactions with the Chairman and his Dad, amongst other things. We note that one of the censured INEDs is Victor Gao Zhikai, the frequent CCTV commentator. He is also an INED of E-commodities (1733) and Modern Land (China) (1107).
SEHK, 8-Jun-2021
For multiple undisclosed connected transactions with the Chairman and his Dad, amongst other things. We note that one of the censured INEDs is Victor Gao Zhikai, the frequent CCTV commentator. He is also an INED of E-commodities (1733) and Modern Land (China) (1107).
PYI (0498) subscribes HK$100m for CB in brokerage subsidiary of Imagi (0585)
| PYI announcement
Company announcement, 13-Apr-2021
Imagi and PYI are 19.08% and 28.53% owned by Oshidori (0622) but technically this is not a Connected Transaction under the Listing Rules for either company because neither is an "associate" (30% owned) by Oshidori (a connected person of both). All 3 companies are in what we call the "Chung Nam Network".
Company announcement, 13-Apr-2021
Imagi and PYI are 19.08% and 28.53% owned by Oshidori (0622) but technically this is not a Connected Transaction under the Listing Rules for either company because neither is an "associate" (30% owned) by Oshidori (a connected person of both). All 3 companies are in what we call the "Chung Nam Network".
Censure/criticism of Sandmartin (0482) and various directors
SEHK, 22-Jan-2021
For undisclosed connected transactions.
SEHK, 22-Jan-2021
For undisclosed connected transactions.
SFC petitions to wind up Combest (8190)
SFC, 21-May-2020
At last, some real action. Webb-site filed a detailed complaint on this matter with the SFC on 21-Dec-2017. The SFC now alleges over-priced acquisitions identified in our complaint. The sellers were BVI companies the owners of which were not disclosed. The SFC alleges 2 directors and a suspected shadow director, one Mr Ng Kwok Fai, caused losses of HK$293m to Combest. Notably the SFC seeks a winding-up rather than just compensatory orders. They should do this more often - many other companies suspended by the SFC, including Lerado (1225) are in such limbo.
SFC, 21-May-2020
At last, some real action. Webb-site filed a detailed complaint on this matter with the SFC on 21-Dec-2017. The SFC now alleges over-priced acquisitions identified in our complaint. The sellers were BVI companies the owners of which were not disclosed. The SFC alleges 2 directors and a suspected shadow director, one Mr Ng Kwok Fai, caused losses of HK$293m to Combest. Notably the SFC seeks a winding-up rather than just compensatory orders. They should do this more often - many other companies suspended by the SFC, including Lerado (1225) are in such limbo.
Court makes orders against ex-Chairman and EDs of Minth (0425)
SFC, 7-Nov-2019
For an undisclosed connected transaction in 2008 involving a BVI company and his nephew and niece, once again demonstrating how the Stock Exchange allows related parties to hide behind offshore companies whose ownership cannot be traced.
SFC, 7-Nov-2019
For an undisclosed connected transaction in 2008 involving a BVI company and his nephew and niece, once again demonstrating how the Stock Exchange allows related parties to hide behind offshore companies whose ownership cannot be traced.
Enviro Energy (1102): breach of Listing Rules
Company announcement, 2-Oct-2018
EE lent money to a third party to help it pay off debts to a company owned by EE's Chairman, Li Sen, making that an undisclosed, unapproved, Major and Connected Transaction.
Company announcement, 2-Oct-2018
EE lent money to a third party to help it pay off debts to a company owned by EE's Chairman, Li Sen, making that an undisclosed, unapproved, Major and Connected Transaction.
Minth (0425): undisclosed connected transaction with Chairman's nephew and niece
| Circular
Company announcement, 12-Jun-2009
Company announcement, 12-Jun-2009
Sign up for our free newsletter
Recommend Webb-site to a friend
Copyright & disclaimer, Privacy policy