I've never seen this before where 0.63% of shareholders rule the AGM (and that satisfies the quorum??) so thought I'll post this to share...
http://www.hkexnews.hk/listedco/listcone...021397.pdf
I think Webb-site is a great teaching site on the many patterns things can go wrong in HKEX and also then teaches us how to look out for pitfalls. Hope I'm not deemed as advertising
Life is too short to learn from one's mistakes... better to learn from others' mistakes.
Hi Specuvestor,
Interesting case indeed. You'd think the chairman would adjourn the meeting without the large shareholders being present.
The quorum for the AGM seems to be just 2 members entitled to vote being present, either in person or by proxy.
Well, the company has issued notices to convene an EGM to reconsider some of those resolutions.
http://www.wuyi-pharma.com/attachment/20...405_en.pdf
Based on the report, the mistake, is due to "miscommunication with their securities broker". Major shareholders can always vote with proxies, without physically present in the meeting.
The quorum, is only two members, as Clement highlighted. I recall, this is similar for most SGX listed companies. The meeting, was most likely chaired by PR staffs, without the major shareholders/board members around.
Good case study. Thank you
https://webb-site.com/articles/enigma.asp
It sounds straight out of Le Carre: “The Enigma Network.”
But suddenly that phrase is sending shock waves across Hong Kong equities, in an unexpected culmination of one man’s campaign to train a spotlight on the darkest corners of the market.
His name is David Webb -- and if investors ignored him until now, they’re paying the price.
Six weeks ago, Webb, a former director of the Hong Kong stock exchange, issued a report titled “The Enigma Network: 50 stocks not to own.” His argument: the companies were entwined in a complex web of cross-shareholdings that had pushed their valuations to unsustainable levels.
https://www.bloomberg.com/news/articles/...-90-losses
https://webb-site.com
One of my favourite website. It greatly increases your investment knowledge from the value perspective.
Avoiding the landmines/traps is one way to achieve superior returns in the stock market.
(Bloomberg) -- Five months after one of the most dramatic stock crashes in Hong Kong history, the city’s authorities are stepping up their investigation into a group of companies that one prominent investor has dubbed the “Enigma Network.”
Hong Kong’s anti-corruption and securities regulators searched eight locations and arrested three senior company executives on Thursday, the Independent Commission Against Corruption said in a statement. The actions were related to the Enigma Network, a group of 50 listed businesses highlighted by activist investor David Webb for their complex web of cross-shareholdings, according to a person with knowledge of the matter.
Many of those stocks plunged suddenly on June 27, some by as much as 90 percent, in a crash that underscored concerns about wild price swings and concentrated ownership of small-cap companies in Hong Kong’s $5.1 trillion equity market. The city’s regulators have vowed to crack down on stock manipulation, with Securities and Futures Commission enforcement head Tom Atkinson saying in October that “anyone who has been exploiting investors through this type of scheme should not underestimate our resolve to stop them.”
(28-06-2017, 07:27 AM)specuvestor Wrote: [ -> ]https://webb-site.com/articles/enigma.asp
It sounds straight out of Le Carre: “The Enigma Network.”
But suddenly that phrase is sending shock waves across Hong Kong equities, in an unexpected culmination of one man’s campaign to train a spotlight on the darkest corners of the market.
His name is David Webb -- and if investors ignored him until now, they’re paying the price.
Six weeks ago, Webb, a former director of the Hong Kong stock exchange, issued a report titled “The Enigma Network: 50 stocks not to own.” His argument: the companies were entwined in a complex web of cross-shareholdings that had pushed their valuations to unsustainable levels.
https://www.bloomberg.com/news/articles/...-90-losses
Omg I still hold on Luen Wong... I believe it is one of the companies in Eginma network.
Sent from my SM-N9005 using Tapatalk
Wonders anyone makes such sort of returns on SGX (eg. Prof Mak) due to the poor corporate governance?
The 20%-a-Year Stock Picker Who Wishes His Edge Would Disappear
Webb finds the source of his outperformance troubling. In his view, beating Hong Kong’s stock market by such a wide margin has only been possible because of the city’s weak corporate governance and lax regulatory oversight.
https://www.bloomberg.com/news/articles/...-disappear