Hong Kong hit by fake 1,000-dollar notes
Posted: 19 March 2007 1631 hrs


HONG KONG : Hong Kong authorities are struggling to replace 1,000-
dollar notes issued by banking giant HSBC in 2000 and 2002 after
finding more than 700,000 dollars (900,000 US) in high-quality fakes.

More than 700 1,000-dollar notes purportedly issued by HSBC were found
in the banking system last week, and 12 people from Hong Kong, China
and Vietnam have been arrested in connection with the case.

Joseph Yam, the head of Hong Kong Monetary Authority, called on people
to return all notes of that denomination issued by HSBC for those two
years.

It was not clear exactly how many of them have circulated in the city,
but Yam said he believed the number was limited.

The discovery has caused panic in the southern Chinese territory, and
many shops are now rejecting such notes.

Police chief Tang King-shing said the bogus notes originated from
outside Hong Kong and that police were working with law enforcement
agencies overseas to smash the syndicate.

- AFP /ls