What a difference two months makes. During the July 1 protests, minibond investor Peter Lee was desperate and stressed - chanting slogans and trying to storm the Bank of China headquarters in Central. Now, he is relaxed and cheerful.
Having struggled for almost a year, Lee last month received a partial refund of more than HK$3 million after accepting an offer by banks to repay customers at least 60 per cent of their initial investment in minibonds.
"I'm very happy because the year-long distress has come to an end," Lee said. Lee was among thousands of Hongkongers who lost billions on minibonds guaranteed by Lehman Brothers when the US investment bank went bankrupt in September last year.
Unlike previous Sundays in the past year, during which he staged protests or met other investors, Lee yesterday had a relaxed lunch and then went hiking with friends. "I was suffering before," he said.
Lee said he would set aside HK$1 million to fund his son's studies in New Zealand - delayed by a year because his savings were tied up in minibonds. The rest would be used to pay for a flat he had bought.
"Although I accept it unwillingly, I don't think we can do more to fight for a better deal," Lee said.
He said his family of four will join other minibond victims at a protest tomorrow to mark a year since the US investment bank's collapse.
Yu Shing, 79, who invested HK$1.08 million in minibonds and got 70 per cent back late last month, also felt relieved. "He feels much better now," daughter Eileen Yu said, adding that stress had contributed to a stroke he suffered in November.
Monetary Authority figures show that from August 7 to September 2, about 70 per cent - or 17,717 - of the 25,000 eligible Lehman-linked minibond investors had accepted the banks' offer. So far, 183 customers have turned it down.
Meanwhile, dozens of investors classified as "experienced" or "professional" marched from Chater Garden to the Monetary Authority yesterday demanding that they be included in the offer.
The Securities and Futures Commission defines "experienced" investors as those who, in the three years before their first purchase of minibonds, executed at least five transactions involving leveraged products, structured products or a combination of them. "Professional" investors have a portfolio worth more than HK$8 million and at least two years of investment experience.
Minibonds are not corporate bonds but high-risk, credit-linked derivatives, marketed as a proxy investment in well-known companies.
Yes, it is peace for Minibond investor in Hong Kong, but not for Singapore.
ReplyDeleteTrue TKL. But they fought for their rights. Can any S'porean minibonder etc truthfully say this?
ReplyDelete"Unlike previous Sundays in the past year, during which he staged protests or met other investors, Lee yesterday had a relaxed lunch and then went hiking with friends."
To S'porean investor, signing petition drafted by you is hard work. For 5,000 over, even complaining to FI is hardwork.
If people not prepared to help themselves, they deserve to be ignored. They had 1 yr to organise themselves, but still needed you to do everything for them. I exclude the people suing DBS, and the MIAG people. They have my respect.
We are suffering in silence
ReplyDeleteNot because we do not do same as Hongkong investors, but becasue Signapore law do not allowed any channels for us to show our angry publicly.
ReplyDeleteTaiwanese can also show their angry by protest and sent the disqualified goverment go down.
How important the protest is! Civilisation should have the right to protest.
Government ignores the petitions not because of only 300 investors at HLP. The main reason is that the government thought that it has the support from the general public.
ReplyDeleteAs long as the vast majoiry of Singaporeans do not have a clear understanding of minibond, the government can afford to continue ignoring the petitions.
Anon at 8.42
ReplyDeleteIt is illegal to protest in M'sia without police permit -- but people still protest.
Even when protests were illegal in Taiwan and HK, people still protested.
Only in Uniquely Singapore do people want freedom to protest, before they protest. Other places jus do it.
And free to protest at Hong Lim. So why only two hundred people turn up on 22 August?
Apathy has its price and bochap investors are getting their just rewards -- govmi, FIs, public ignoring you.
Move on or do somehing
I did go to HOngling. Why other people do not want to go to Hongling for protesting becasue they know this kind of gather can not pressure FI & MAS at all. The protest can only take effect if we can protest in front of the FI's door or on the street.
ReplyDeleteAnon at 2.16 pm 9/9
ReplyDeleteIf 5,000 investors turn up at HL and they each bring 2 other persons -- 15,000 people.
Apathy has a price. Investors are paying it.
Many reasons why the investors did not turn out at HL Park:
ReplyDelete1)Many did not visit Mr.Tan's blog and not aware of the gathering
2)Many are afraid of letting their spouses/parents/children/siblings/relatives aware that they have lost a large sum of money.
3)Many (especially those civil servants) are afraid of letting their colleagues aware that they are involved in the petition.
4)Some investors get the blame from the closed relatives for losing large sum of money and are in the depression state.
5)many don't have a clear understanding of the minibond products and agreed with our leaders that it is just another bad investment
6)some awaiting for FIDREC outcome
7)some accepted the partial compensation offered
8)Some are kiasi, some are worn down, some give up
.....
To A Tan:
ReplyDelete"public ignoring you."
It is because of most people do not have a clear understanding of this minibond saga and worse many of them thought that it is just another bad investment.