Chu Lee, Pollyanna Yuet Wah 朱李月華

Even after today's plunge, Kingston is trading at 13.2x net tangible assets of $0.508 per share, 70.8x trailing earnings, and is heavily dependent on low-cost loans from its majority shareholder. Don't bet on that continuing. We also look at the extent of its margin lending to controlling shareholders of large numbers of other listed companies.

They don't say from whom, but a subsequent disclosure of interest shows that the lender is Kingston Finance Ltd, which is 80% owned by Pollyanna Chu Lee Yuet Wah.

This story is a leftover from a vote-rigging scheme in the attempted privatisation of PCCW in 2009. The 22 clients in Macau were among 175 Kingston clients who bought 1-3 board lots of PCCW shares, withdrew them from the clearing system, registered them in their own names and then voted in favour of the privatisation to boost the headcount.

The lender is not disclosed, but subsequent disclosure of interests shows that it is Kingston Finance Ltd, which is controlled by Pollyanna Chu Li Yuet Wah.

In this hearing on discovery, the judge refers to the Company Secretary Mr Lai Yick Fung (para 50) and says "Lai's version is simply not capable of belief". She also refers to Mrs Chu and says (para 52) "Chu has previously been held by the court to be an incredible witness who had contrived a plot..." in relation to the PCCW vote-rigging scandal.

We warn investors of a bubble in the stock of China Strategic, the 80% owner of the proposed buyer of Taiwan's Nan Shan Life Insurance, partly financed by a massive note issue convertible into 78bn shares at $0.10 each. We publish the placing list and analyse the names in the deal. Finally, we warn investors to avoid 7 companies in the "Chung Nam network", which has lost HK$6.2bn in 5 years.

In our view the judgment in the Court of First Instance on PCCW's scheme of arrangement and the alleged vote-rigging provides ample grounds for appeal. We look at the ruling in detail and where the SFC may be taking this case on Thursday at the Court of Appeal.