22 July 2009
Scores of minibond investors who lost their money when Lehman Brothers went bankrupt are holding out for full compensation of their principal sum and insist a proposed pay-off of up to 70 per cent is unacceptable.
A Ms Siu, 52, who declined to give her full name, purchased HK$6 million worth of Lehman minibonds from Bank of China (Hong Kong) and flatly rejected the proposal.
"This is not all right," she said. "I will continue to fight [for a full refund]."
She did not rule out accepting a 60 per cent pay-off and then taking the bank to court to recoup the rest of her investment. But she was not optimistic.
"Why can't the banks follow what Sun Hung Kai [Financial] did? How come the banks are not able to do something securities firms could?" she said.
Ms Siu said she planned to join about 100 investors at a protest at the Bank of China headquarters on Friday.
Bank of China sold most of the Lehman-linked minibonds in Hong Kong and many of the other banks are expected to follow whatever settlement terms are agreed by it. But a settlement deal offering just 60 to 70 per cent compensation is expected to be a tough sell to angry investors, who were emboldened in their fight by the 100 per cent pay-off arrangement agreed between more than 300 investors and brokerages Sun Hung Kai Financial and KGI Asia.
Democrat legislator Kam Nai-wai said whether the buy-back proposal was adopted would largely hinge on how many investors agreed to it. It was hard to predict how well received the settlement deal would be among the investors. Mr Kam said he planned to get their feedback on Sunday.
"As for the banks, if the proposed settlement cannot save them from trouble [from compensation seekers], it was not wise to take it," he said.
The Securities and Futures Commission should also explain why banks could escape from full responsibility while some securities firms could not, Mr Kam said.
Wednesday, July 22, 2009
Investing in gold
Dear Mr. Tan
Since bank interest rates have been very low recently, a friend has recommended me to invest in gold. The buying and selling of gold is through this company. The company’s website is (link deleted)
REPLY
I do not know if this organisation is reliable. You should not invest in any organisation that you are not familiar with. If you wish to invest with this organisation, you must do your research well. Some banks in Singapore offer similar facilities for you to invest in gold. I think that UOB is one of them. I suggest that you find out more about their offer.
If you wish to invest in gold, make sure that it is not more than 10% of your total savings. And hold it as a long term investment.
Since bank interest rates have been very low recently, a friend has recommended me to invest in gold. The buying and selling of gold is through this company. The company’s website is (link deleted)
REPLY
I do not know if this organisation is reliable. You should not invest in any organisation that you are not familiar with. If you wish to invest with this organisation, you must do your research well. Some banks in Singapore offer similar facilities for you to invest in gold. I think that UOB is one of them. I suggest that you find out more about their offer.
If you wish to invest in gold, make sure that it is not more than 10% of your total savings. And hold it as a long term investment.
Investing in a property for rental
Hi Mr Tan,
My wife and I own a HDB executive apartment, fully paid with CPF and cash.
We have some investments. We are considering to cash them for 20% down payment for a private property. We will rent the property to pay the monthly instalment.
Should we go for a second property or continue investing in equity? We are now in our 40s. It is for retirement use.
Hi
This is a personal view. It is all right to buy a property for one's occupation but not a good idea to invest in a property for rental.
I dislike investing in a physical property for the following reasons:
a) the price is too high
b) the return, after deducting expenses, is too low
c) it is a hassle to rent out the property
d) it does not offer diversifcation.
e) it is highly speculative and depends on making the right decision on timing and choice of property.
Investing in REITS may be a better idea, as it offers the same opportunity to make the same kind of potential gain as physical property, has less hassle in managing the property and offers diversification over several properties.
All the best in your decision!
My wife and I own a HDB executive apartment, fully paid with CPF and cash.
We have some investments. We are considering to cash them for 20% down payment for a private property. We will rent the property to pay the monthly instalment.
Should we go for a second property or continue investing in equity? We are now in our 40s. It is for retirement use.
Hi
This is a personal view. It is all right to buy a property for one's occupation but not a good idea to invest in a property for rental.
I dislike investing in a physical property for the following reasons:
a) the price is too high
b) the return, after deducting expenses, is too low
c) it is a hassle to rent out the property
d) it does not offer diversifcation.
e) it is highly speculative and depends on making the right decision on timing and choice of property.
Investing in REITS may be a better idea, as it offers the same opportunity to make the same kind of potential gain as physical property, has less hassle in managing the property and offers diversification over several properties.
All the best in your decision!
Bird Nest Industry in Kedah, Malaysia
I visited Padang Seria, which is in Kedah and 50 km from Penang Island. It is developing a bird nest industry. Over 100 shophouses have been converted into "bird nest house". The swiflets use the house to build their nests to raise the young swiflets.
My friend told me that a few other towns in Kedah and Johore are also developing this new industry. Bird nest has some medicinal value and is also a delicacy.
I shall be uploading some photos soon.
My friend told me that a few other towns in Kedah and Johore are also developing this new industry. Bird nest has some medicinal value and is also a delicacy.
I shall be uploading some photos soon.
Personal accident insurance
Dear Mr. Tan
I have a personal accident plan, which cost me about $150/annum with a sum assured of $100,000. Is it too expensive? I am in class 2.
REPLY
What is the coverage under the personal accident policy? Some policy covers death, accident, and temporary disablement. To decide whether to continue with this policy, it is best for you to get a quote for a comparable product from another company.
I have a personal accident plan, which cost me about $150/annum with a sum assured of $100,000. Is it too expensive? I am in class 2.
REPLY
What is the coverage under the personal accident policy? Some policy covers death, accident, and temporary disablement. To decide whether to continue with this policy, it is best for you to get a quote for a comparable product from another company.
Existing whole life policy
Dear Mr Tan,
I am looking for an insurance plan to increase my cover. I was looking for some low-cost insurances (due to my increasing expenses), such as decreasing term insurance.
I bought a whole life policy about 2 years ago, paying almost $160 monthly (for 15 years). I read from your blog that this insurance come with a high cost. What should I do with it? Should I terminate it and take the cash? Or I should hold on to it until the cash value is enough to cover the premiums I paid?
I had now decided to take a decreasing term, personal accident and a medishield plan.
REPLY
Please read the FAQ in my website: www.tankinlian.com/faq
For the whole life policy which has been taken for 2 years, it is probably better to continue with the policy, rather than to terminate it. However, you can ask for the cash value in 5 years time to decide on the best option. Read the FAQ on "existing insurance policy".
I am looking for an insurance plan to increase my cover. I was looking for some low-cost insurances (due to my increasing expenses), such as decreasing term insurance.
I bought a whole life policy about 2 years ago, paying almost $160 monthly (for 15 years). I read from your blog that this insurance come with a high cost. What should I do with it? Should I terminate it and take the cash? Or I should hold on to it until the cash value is enough to cover the premiums I paid?
I had now decided to take a decreasing term, personal accident and a medishield plan.
REPLY
Please read the FAQ in my website: www.tankinlian.com/faq
For the whole life policy which has been taken for 2 years, it is probably better to continue with the policy, rather than to terminate it. However, you can ask for the cash value in 5 years time to decide on the best option. Read the FAQ on "existing insurance policy".
Subscribe to:
Posts (Atom)