KPMG manager charged by ICAC

A senior manager of KPMG was charged by the ICAC Thursday with offering a $100,000 bribe to his subordinate in relation to the global offering of Hontex International Holdings Company Limited (Hontex).

Leung Sze-chit, aged 32, faces a charge of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance. The defendant will appear at Eastern Magistracy at 9:30 am today.

The charge alleges that on February 20 this year, the defendant, together with another person, offered $100,000 to an employee of KPMG as a reward for preparing the accountant's report in the prospectus for the global offering of Hontex.

The defendant has been released on ICAC bail, pending his court appearance today.

The KPMG spokesman in Hong Kong was not immediately available for comment. The Securities and Futures Commission, Hong Kong's stock market watchdog, said that it would continue to freeze up to HK$1 billion in net proceeds raised from investors.

Stocks fall as developers slide

Hong Kong stocks fell, led by developers on concern Beijing will take more steps to curb property prices. Energy companies dropped on a slump in oil prices.

The Hang Seng Index slipped 0.3 percent to 21,867.04 at the close of trading, with three stocks falling for every one that rose. The measure, which climbed as much as 0.1 percent and dropped as much as 0.5 percent, changed directions at least 13 times. The Hang Seng China Enterprises Index, which tracks the so-called H-shares of Hong Kong-listed mainland companies, dropped 1 percent to 12,855.31.

Hang Lung Properties Ltd, a Hong Kong developer that generated 40 percent of its fiscal 2009 revenue on the mainland, slid 3.2 percent. China Overseas Land & Investment Ltd, a Hong Kong-based builder controlled by the Chinese construction ministry, lost 2.7 percent. Cnooc Ltd, China's biggest offshore energy explorer, dropped 2.2 percent.

Imperial jade seal fetches $12.4m

A Qing dynasty imperial white-jade seal was sold for a record HK$95.9 million ($12.4 million) in Hong Kong Thursday, twice what it fetched in 2007 as Chinese buyers vied for the rarest antiques, especially those used by emperors.

The item, bearing the Chinese characters for "Treasure of the Emperor Emeritus," was bought by an unidentified Asian man in his 30s bearing paddle No. 2318 and who offered bids of HK$5 million each. The seal is one of 2,400 lots of wine, art and gems offered by Sotheby's that the company expects to fetch HK$1.3 billion. The antique auction continues at the Hong Kong Convention Center.

Tsingtao BreweryH2 net up 91.7%

Hong Kong-listed Tsingtao Brewery, China's best-known beer brand and No 2 brewer by volume, posted a 91.7 percent rise in second-half profit on rising beer sales and lower raw-material costs. The brewer said in the earnings statement that it aims to enlarge its market share and increase production volume in 2010 in an effort to tap the continuing recovery of the beer market in China. Tsingdao said its July-December 2009 net profit rose to 610.22 million yuan ($78.6 million) from 318.4 million yuan a year earlier, according to Reuters calculations using data filed to the Shanghai stock exchange. Full-year net profit was 1.25 billion yuan against 699.6 million yuan in 2008. Tsingtao said its sales volume rose 9.9 percent year-on-year to 59.1 hectolitres for the full year of 2009. Its sale volume rose 12.6 percent in the first half to 30.2 hectolitres.

Alibaba.com sees 40-50% growth

Hong Kong-listed Alibaba.com, China's biggest e-commerce company, said it expects revenue growth to accelerate this year as it expands, pressuring margins that should start to improve in 2011.

Analysts expect Alibaba.com's margin to be hit slightly in 2010 from ongoing investment plans, such as the development of its Chinese wholesale website 1688.com and the consolidation of its HiChina purchase. Alibaba.com Chief Executive Officer David Wei said the company is also open to buys in China and overseas and that its investment plan was on track.

"We will continue to see customer numbers grow, followed by very strong revenue growth this year, and our return on margins to be very, very clear in 2011," Wei said.

Agencies - China Daily

(HK Edition 04/09/2010 page3)