HKSBA Donation to HK Police

On 19 December 2005, the securities industry gathered together at a dinner to congratulate Charles Lee (Independent Non-executive Director of the Year), Paul Chow (Executive Director of the Year), the HKEx Board (Board of the Year)and Charles Lee, Marvin Cheung and Henry Fan joining the Executive Council, and Paul Chow receiving the Silver Bauhinia Star.

During the evening, many comments were made as to the excellent job that the HK Police had done during the WTO. In particular, the restraint that they showed in the face of violent provocation, and the expedient way they handled the clearance of Gloucester Road was a credit to HKG. The efficient way they handled the WTO protestors contributed to the stability, prosperity and harmony of our community.

The HK Stockbrokers Association (HKSBA) expressed our appreciation to Charles Lee and hoped that he and the other members of the Executive Council (i.e. Henry Fan and Marvin Cheung) would express our gratitude to the appropriate authorities in their capacity as Exco members.

The HKSBA announced during the dinner that we would try to raise an amount for the police welfare fund as a token of our appreciation. We decided to put up HK$100,000 in the name of the Hksba and called for further donations. We had a further donation of HK$100,000 on the morning of Tuesday.

Some members of the committee, together with Charles Lee, met with Dick Lee, Commissioner of Police on Tuesday and delivered a cheque for HK$200,000 in the name of the Hksba.

WTO Conference in HKG

Well, what have we done here? We invited the WTO Conference to HKG and forgot that they come with a bunch of militant Korean demonstrators. Today is the first day, and they are already attacking the Police who were remarkably tolerant. Watching it on TV, I wanted to go and crack a few heads! The Korean farmers are protesting that WTO is depriving them of a living and that we should either go back to isolation or they should get MORE government subsidies. But why demonstrtate in HKG? Go home!!!

#27 Galaxy

The stock started to recover after an article in the SCMP today said that their US$600 million bond issue was oversubscribed. They now have more than enough money to fund their development until the new casino opens.

#939 China Construction Bank - 2

Not a good day for the stock. Today 24 warrants on CCB started trading but unfortunately, the stock trended down instead of up. High of $2.575 and low of $2.475. Spent most of the day at $2.50 down $0.05.

#939 China Construction Bank

After briefly trading below issue price, CCB has moved up slowly but surely to HK$2.60. The first warrants on CCB will be traded on 19 December 2005, and I expect the price to move up. Remember the performance of Bank of Communications when the warrants are traded?

(Note: I own CCB shares)

#823 LINK REIT

The performance of the Link REIT is over and above all expectations. This morning the high is $12.10, and currently $12.00. For retail clients, this is a $2.30 profit assuming no interest costs. Not too shabby for a punt.

Hutchison #13 3G Harvest Time!

Finally, it looks like Hutchison #13 will start getting pay back from its long investment in 3G. The Italian operations will be listed in November 2005. Hutchison could gain up to HK 18 billion (depending on valuation).

(Note: I own Hutchison.)

HSBC Announced Good Results

HSBC #5 announced good results at the top end of analysts expectations. The market react positively to the news and is up 90 as of 10:22am. Bank Of Communications #3328 is benefiting from its relationship with HSBC.

Cheung Kong #1 (up 0.70 to 85.300 and Hutchison #13 (up 0.35 to 76.35) are still the market leaders.

(Note: I own all of the above except for HSBC.)

Arbitrage opportunity #1122 Qingling Motors

The strategic investor, Isuzu Motors, is making a partial offer to acquire shares at $1.92 (current $1.58). It has guaranteed to acquire at least 609 shares per board lot (2,000 shares) from any shareholders tendering shares for the offer. If all available shares are tendered, then Isuzu will take up only the guaranteed 609 shares per lot. However, if less shares are tendered, then they may accept more than the 609 shares.

The risk is that after the offer, the price falls below the current price. You make $0.34 per share on the guaranteed offer but the rest is at risk. But this is as good an arbitrage opportunity as I have seen for a long time. Happt hunting!

Boring, boring, boring!

The market is always directionless from end of March thru end of June. Most of the gains come in October thru March. The rest of the time, it's best to sit tight and watch the grass grow.

For small brokers this is not ideal, we need turnover!