Protesters make their feelings known outside the Bank of China Tower yesterday. BLOOMBERG Minibond investors are being urged by the government to accept the new compensation deal that will see them get back up to 96.5 percent of their investments.
However, dissatisfied investors of the Lehman Brothers-linked minibonds vowed to fight for full compensation even if it takes years.
Financial Secretary John Tsang Chun-wah said: ``The proposal has shown a concerted effort for a reconciliation. If investors are still upset, they have to go through the legal process.''
Secretary for the Treasury and Financial Services Ceajer Chan Ka- keung added that the package, which allows investors to get more compensation than those in other countries, represents good value.
The Hong Kong Monetary Authority and Securities and Futures Commission also welcomed it.
The package ``will return much higher amounts of their initial investments than it would have been possible without this strategy in place,'' said SFC chief executive Martin Wheatley.
And HKMA deputy chief executive Arthur Yuen Kwok-hang said acceptance meant prolonged court proceedings and high legal costs could be avoided.
But Eddy Chan Ho-wai, chairman of the Alliance of Lehman Brothers Victims, which represents 7,000 of the 31,000 local minibond holders, said only full compensation can adequately reflect the banks' dubious selling tactics.
``We'll continue to demonstrate outside the banks until we get 100-percent compensation,'' Chan said.
``We've already spent over two years to fight for our compensation, so we are willing to spend a few more years.''
Mak Oi-ling, 61, who lost about HK$700,000, said: ``I'm sad about the new proposal.
`` Those are my lifelong savings and I will continue to fight for 100-percent compensation.''
Meanwhile, about 30 victims shouted ``shame on you'' from the Legislative Council's public gallery after the special meeting of the financial affairs panel yesterday.
About 20 minibond buyers also demonstrated outside Bank of China (Hong Kong) headquarters, saying they will not accept the proposal. BOCHK was the largest vendor of the minibonds.
Democratic Party lawmaker Kam Nai-wai said the compensation after deduction of the value of the collateral is ``extremely small'' and ``cannot reflect the degree of impact to society.''
Some of the losses incurred on the minibonds repurchased by 16 local banks are now expected to be reversed.
Chong Hing Bank (1111) said it had a provision of HK$340 million for the repurchase of minibonds, but with the proposal it will lose only HK$73 million.
