On 31 May 2024, we, Argyle Street Management, published a presentation on Ms. Elizabeth Kan, an executive director of China Merchants China Direct Investments (CMCDI, 133 HK) and a Responsible Officer of CMCDI’s manager.
We asked questions on her potential conflict of interest, disclosure issues and her knowledge on advance technologies.
Finally, Ms. Kan wrote a response in the recently published FAQ webpage of CMCDI, a poorly-chosen medium for releasing important information on the director of a listed company.
Ms. Kan characterizes our legitimate questions as “misconceived“, and her response leaves shareholders with more questions than answers.
No conflict of interest with First Eastern?
Ms. Kan is the Managing Director of First Eastern Investment Group, the principal of which is Mr. Victor Chu. First Eastern is a venture capital firm that invests in China “in fields like artificial intelligence, robots and big data“.
In other words, First Eastern does exactly what CMCDI does. Is there any conflict of interest?
Ms. Kan says:
I do not consider that my role at First Eastern conflicts with my board responsibilities at CMCDI. In any event, potential competing interests of board members associated with China Merchants and First Eastern have been fully disclosed and any conflict are dealt with pursuant to established procedures.
Is that all what she has to say, seriously?
What does Ms. Kan know about advanced technologies?
We asked Ms. Kan, a member of the investment committee, what she knows about advanced technologies that CMCDI invests in, such as artificial intelligence (Moonshot AI), robotics (Flexiv) and autonomous vehicles (Pony.ai).
Ms. Kan responded:
I am a Fellow Member of the HK Institute of Certified Public Accountants, and a Member of the HK Securities and Investment Institute. I began my professional career with the Hong Kong office of Arthur Andersen & Co., an international accounting firm, in the area of audit and business advisory services. I have been involved in the direct investment and investment advisory activities of First Eastern since 1988.
Is that it?
Does Ms. Kan have any undisclosed interest in CMCDI shares?
We asked Ms. Kan if she has any interest in CMCDI shares. If she does, the Listing Rules requires her to disclose. She has not disclosed any.
She gave two versions of answers to the same question.
Around June 2024, she said:
I have no beneficial interest in any CMCDI shares.
Later, on 18 October 2024, she changed her answer:
I have never held any CMCDI shares.
The change is suspicious, considering that the rest of her responses did not change.
Even though Ms. Kan does not personally hold shares in CMCDI, she may still have beneficial interest in CMCDI shares indirectly through other entities, such as Victor Chu China Investment Limited.
We would like Ms. Kan to clarify: has she ever (currently or historically) INDIRECTLY had any beneficial interest in CMCDI shares (e.g. through other entities) during her directorship?
FAQ website page is not a proper way to release material information on a listed company
Ms. Kan’s response – hidden deep in CMCDI’s website – is not a proper way for a director of a listed company to disclose such material information as issues of conflicts of interest.
She should have done that through a proper announcement on the HKEx portal, so that shareholders can receive timely notification of new information.
If directors of listed companies can freely disclose material information through their own websites, that defeats the purpose of having Listing Rules.
Just in case Ms. Kan edits or deletes her response retroactively, we have permanently archived that FAQ webpage.
If you are new to CMCDI, read our primer.
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2024年5月31日，我们Argyle Street Management公布了一个关于招商局中国基金（“招商局基金”，133 HK）执行董事以及投资经理负责人员（Responsible Officer）简家宜女士（“简女士”）的演示文稿（PPT）。
我们就她可能存在利益冲突、披露问题以及她对高端科技的了解情况提出了疑问。
终于，简女士在招商局基金最近发布的常见问题解答页面中披露了一份回应。我们认为以常见问题界面发布上市公司董事相关的重要信息是一个非常不恰当的方式。
简女士将我们合理的问题描述为“误解“，她的回应并没有提供答案反而留下了更多问题。
与第一东方的角色无利益冲突？
简女士是第一东方投资集团（“第一东方”）的董事总经理。第一东方的主要负责人是诸立力先生（”诸先生”，英文名Victor Chu Lap Lik）。而第一东方是一家风险投资公司，主要投资于中国的“人工智能、机器人和大数据等领域的机会”。
换句话说，第一东方的业务与招商局基金完全相同。那是否存在利益冲突？
简女士说：
本人不认为本人在第一东方的角色与本人在中国基金的董事会的职责存在冲突。无论如何，与招商局集团和第一东方有关连的董事会成员的潜在竞争权益都已被充分披露，任何利益冲突都将按照既定程序处理。
她能说的就只有这些吗？
简女士懂哪些高端科技？
简女士作为招商局基金投资委员会的成员，我们询问她了解哪些高端科技？尤其是招商局基金已经投资的人工智能（月之暗面），机器人技术（非夕科技）以及自动驾驶（小马智行）。
简女士说：
本人是香港会计师公会资深会员，以及香港证券及投资学会会员。本人的职业生涯始于国际会计师事务所安达信公司香港办事处，从事审计和商业咨询服务领域。自1988年以来，本人一直参与第一东方的直接投资和投资咨询活动。
就只有这些？
简女士是否持有未披露的中国基金股份权益？
我们询问简女士是否持有未披露的中国基金股份权益？如果有，上市规则要求其披露。目前简女士并未做出任何披露。
简女士对此给出了两份回复：
2024年6月，简女士说：
本人没有任何中国基金股份的实益权益。
后来，在2024年10月18日，简女士将回复修订成如下：
本人从未持有任何中国基金股票。
考虑到她其余的回应没有改变，这个回复的变化令人怀疑。
尽管简女士可能并未个人持有招商局基金的股份，但她可能通过其他实体间接持有招商局基金股份的实益利益，比如通过Victor Chu China Investment Limited。
我们希望简女士澄清：她在担任董事期间是否曾经（无论是现在还是过去）间接持有过任何招商局基金股份的实益利益（例如通过其他实体）？
以常见问题界面发布上市公司董事相关的重要信息是一个非常不恰当的方式
简女士的回复深藏在招商局基金的网站深处，这并非上市公司董事披露利益冲突等重要信息的适当方式。
她应该通过在香港交易所门户网站上做出适当公告来披露这些重要信息，以便股东们能及时获知新信息。
如果上市公司董事可以随便通过自己的网站披露重要信息，那么还需要上市规则吗？
以防简女士事后修改或删除她的回应，我们已将常见问题解答网页永久存档。
如果您刚开始了解中国基金，请阅读我们的指南。
欢迎随时与我们联系：
💬 微信: ASM_Argyle
💬 WhatsApp: +852 6317 6371
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