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FS welcomes Minibonds agreement

     The Financial Secretary, Mr John C Tsang, today (July 22) made the following statement in response to the re-purchase agreement jointly announced by the Securities and Futures Commission (SFC), the Hong Kong Monetary Authority (HKMA) and 16 distributing banks regarding Lehman Brothers Minibonds:

     "We welcome the agreement reached among the SFC, HKMA and the distributing banks for the re-purchase of Lehman Brothers Minibonds. It represents a reasonable settlement that has taken account of the interests and rights of the investors concerned.

     If the agreement is accepted, the vast majority of investors will be able to get back 70 per cent or more of their original investments.

     The agreement will put an end to more than 10 months of distress for investors. It will also enable the banks to resume their normal operation.

     The decision of the SFC is taken after a thorough and fair investigatory process, reflecting that an effective channel exists in our regulatory structure to ensure that investors' interests are protected.

     Nevertheless, we will learn from experiences gained in the Lehman Minibonds issue and improve our regulatory system so that investor protection can be further strengthened."

Ends/Wednesday, July 22, 2009
Issued at HKT 17:44


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