NZI Hong Kong agent in trouble

Press, 8 September 1982, Page 29

NZI Hong Kong agent in trouble

PA Hong Kong Hundreds of anxious customers yesterday queued outside the closed shops of a Hong Kong jewellery chain reported to be in financial difficulties over gold dealing. The 10 shops of Tse Lee Yuen Jewellery were closed without warning yesterday, and a special police team has been set up to handle complaints pouring in, mainly from people holding bullion savings accounts with the company. Among creditors keeping an eye on developments is

New Zealand Insurance. Ltd. Tse Lee Yuen are agents for New Zealand Insurance and issued one-year policies free of charge when selling jewellery worth more than SHKSOO ($NZ110). A spokesman for New Zealand Insurance said the policies would be honoured. He emphasised that Tse Lee Yuen issued policies on jewellery only. Reports here blame Tse Lee Yuen’s problems on gold. It ran a heavily promoted bullion savings scheme — a form of “paper gold’’ — and there has been speculation

that the company may have suffered heavy losses during the wild fluctuations of the gold market in recent weeks. Bullion sources, however, have said the company had been in financial trouble for some time. It has been confirmed that Tse Lee Yuen sold its membership of the Chinese Gold and Silver Exchange Society a year ago, which meant it could not trade gold directly within the society. Nor is Tse Lee Yuen a member of the Hong Kong Commodities Exchange, which trades in gold futures.