Changsha Investors Sue Big State-owned Banks over Wealth Management Products

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Investors in the Hunan-province capital of Changsha have successfully obtained compensation from the local branches of big state-owned banks in relation to losses sustained following investment in dubious wealth management products (WMP’s).

The Hunan province legal system recently issued decisions in support of plaintiffs who filed lawsuits against the Hunan province branches of Bank of China (BOC) and Industrial and Commercial Bank of China (ICBC), after sustaining heavy losses on WMP’s worth several hundred thousand yuan.

Li Ling (黎玲) sued local branches of BOC over losses on WMP’s recommended by BOC staff in November 2013, while Hu Jianshu (胡建树) sued ICBC over losses on WMO’s purchased in March 2014.

On 31 March the Hunan Province Supreme Court upheld previous decisions made against BOC’s Hunan province branch in favour of Li Lian, after the bank sought to overturn prior rulings.

On 13 April Hu Jianshu and more than seven hundred other plaintiffs announced that they had obtained compensation in relation to WMP’s purchased by means of ICBC, following a ruling made by the Changsha Middle Court.