Investors to sue 11 renowned banks

09:30, 27 October 2009

BEIJING. October 27. KAZINFORM A group of 30 millionaires plan to sue 11 foreign banks including ABN AMRO, DBS, HSBC, and Citibank in Beijing, claiming those banks cheated them into buying complex financial derivatives which led to losses of more than HK$1 billion yuan ($129 million); Kazinform refers to China Daily.

Lai Jianping, a partner of the Transking Law Office in Beijing and director of a so-called 'Victims Association of Discount Stock", told METRO yesterday there are 30 members in his association, including some living in Taiwan and Hong Kong.

"We had a total loss of HK$1 billion," he said.

Lai said the group filed lawsuit applications in 4 Beijing courts but were yet to receive a reply.

The group wants the bank to compensate their losses.

Members of the group were once considered wealthy in China, but they say that their personal assets shrank after buying "KODA" (Knock Out Discount Accumulator), a complicated derivative that investors get by signing a one-year contract with banks to buy an agreed amount of Hong Kong stocks at a fixed price.

Lai said he lost more than HK$21 million in 1 year, with an initial investment of HK$ 4 million.

DBS China issued a statement yesterday, saying the case was before the court and that DBS did not comment on ongoing cases; Kazinform cites China Daily.

See www.chinadaily.com.cn for full version

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