Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Investment returns

  • 3 Dec 2024

    ECHELLES RIFFAUD S.A. v. THE SECRETARY FOR JUSTICE

    Citation
    [2024] HKCFI 3509
    Court
    Court of First Instance
    Case number
    HCA1841/2011

    The court refused to vary the pre-judgment interest rate from P+1% per annum. Government bond yields and the Government's investment returns were not appropriate proxies for the theoretical cost of borrowing because the bonds were issued for market‑development, not out of financing need, and adopting bond or investment rates would depart from the established P+1% commercial presumption and introduce unacceptable uncertainty.

  • 7 Feb 2013

    LI KA WAI v. HOSPITAL AUTHORITY

    Citation
    LI KA WAI v. HOSPITAL AUTHORITY
    Court
    Court of First Instance
    Case number
    HCPI671/2007

    The Cookson v Knowles assumption of a 4.5% real net return is no longer valid in Hong Kong; the court must deduct price inflation and reasonable management fees and tailor the notional investment portfolio to the claimant's period of need. Accordingly distinct net discount rates are set according to term of need: -0.5% for plaintiffs with needs up to 5 years (portfolio: ~20% 12-month time deposits, 80% EFNs), 1% for needs up to 10 years (portfolio: ~15% time deposits, 85% EFNs/bonds of BBB+ or better after a 0.75% management fee), and 2.5% for needs exceeding 10 years (portfolio: ~10% time de…

  • 7 Feb 2013

    YUEN HIU TUNG v. HOSPITAL AUTHORITY

    Citation
    YUEN HIU TUNG v. HOSPITAL AUTHORITY
    Court
    Court of First Instance
    Case number
    HCPI228/2010

    The Cookson v Knowles 4.5% assumption is no longer valid in Hong Kong. The court sets pragmatic, horizon-based real net discount rates after deducting price inflation and reasonable management fees, using asset mixes and review periods matched to claimant needs: -0.5% for needs up to 5 years, 1% for needs up to 10 years, and 2.5% for needs exceeding 10 years. These rates follow from (a) adopting price inflation (not payroll) for non-earnings losses, (b) deducting reasonable management fees where mixed portfolios (equities/bonds) are used, (c) using a 5–7 year review for fixed income/EFNs and…