Minsheng accuses teller of US$13m fraud
( 2002-02-25 15:02 ) (7 )

Minsheng Bank, China's sole private bank said on Monday, its former Shanghai bank teller has allegedly defrauded it of 108 million yuan (US$13.05 million) through forged documents.

"We've recovered some of the... funds with police assistance and will take further legal action soon. Our bank will use all means available to minimise losses from this incident," Minsheng said in a statement in the Shanghai Securities News.

A Minsheng spokesman said the Beijing-based bank would await the results of a police investigation before revealing total losses incurred.

The bank warned investors of potential risks of investing in Minsheng, but did not elaborate. Minsheng reported 150.88 million yuan in net profit for 2000 and has said it expected 2001 earnings to have risen 60 percent.

The Minsheng spokesman said the bank was presently uncertain of the exact scale of the teller's activities and declined to comment further.

Minsheng's A shares, reserved for Chinese investors, were down 3.5 percent at 12.90 yuan at 0248 GMT. Analysts said part of the decline was due to an interest rate cut last week that was expected to cut into earnings of Chinese banks.