Hang Lung Bank was a bank in Hong Kong

Hong Kong

Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...

. It is now merged to DBS Bank (Hong Kong)

DBS Bank (Hong Kong)

DBS Bank Limited , a subsidiary of DBS Bank headquartered in Singapore, is a licensed bank incorporated in Hong Kong. It is the sixth largest bank in Hong Kong as measured by assets.-History:...

.

On September 1982, a bank run

Bank run

A bank run occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent...

 happened on Hang Lung Bank after the collapse of Che Lee Yuen Jewellery & Goldsmith Company

O'Che 1867

O'Che 1867 is a family-owned goldsmith and jewelry business in Macau. It was founded in 1867 . The family's history in the business spans four generations and has witnessed the city's historical changes and economic development...

 and the spread of rumours

Rumours

Rumours is the eleventh studio album by British-American rock band Fleetwood Mac. Largely recorded in California during 1976, it was produced by the band with Ken Caillat and Richard Dashut and was released on 4 February 1977 by Warner Bros. Records. The record peaked at the top of both the...

. But the run subsided on the second day. On September 1983, the level of deposits in the bank was below the level after adjusting for the valuation effect of the depreciation

Depreciation

Depreciation refers to two very different but related concepts:# the decrease in value of assets , and# the allocation of the cost of assets to periods in which the assets are used ....

 of the Hong Kong dollar

Hong Kong dollar

The Hong Kong dollar is the currency of the jurisdiction. It is the eighth most traded currency in the world. In English, it is normally abbreviated with the dollar sign $, or alternatively HK$ to distinguish it from other dollar-denominated currencies...

. On 27 September 1983, the Legislative Council

Legislative Council of Hong Kong

The Legislative Council is the unicameral legislature of Hong Kong.-History:The Legislative Council of Hong Kong was set up in 1843 as a colonial legislature under British rule...

 passed the "Hang Lung Bank (Acquisition) Ordinance Bill 1983" and the British Hong Kong

British Hong Kong

British Hong Kong refers to Hong Kong as a Crown colony and later, a British dependent territory under British administration from 1841 to 1997.- Colonial establishment :...

 Government decided to take over the bank. This ensured HK$148 million worth of cheques could be returned to the bank to meet its clearing

Clearing (finance)

In banking and finance, clearing denotes all activities from the time a commitment is made for a transaction until it is settled. Clearing is necessary because the speed of trades is much faster than the cycle time for completing the underlying transaction....

.

In 1989, the bank was sold to Dao Heng Bank

Dao Heng Bank

Dao Heng Bank Group Limited was a bank in Hong Kong and it had two subsidiaries before acquisition, Dao Heng Bank Limited and Overseas Trust Bank Limited....

. In 1990, it was merged to Dao Heng Bank. In 2003, Dao Heng Bank, Kwong On Bank

Kwong On Bank

Kwong On Bank Limited was a Hong Kong-based bank. It was established in 1935 and owned by Dr. Leung Ding Bong family, the President of the former Urban Council of Hong Kong, and Japan-based Fuji Bank. It is acquired and privatized by DBS Bank and renamed as DBS Kwong On Bank Limited in 1999...

 and Overseas Trust Bank

Overseas Trust Bank

Overseas Trust Bank Limited was a bank in Hong Kong. It was established in 1955 by Chang Ming Thien, a Malaysian businessman and it was listed on the Hong Kong Stock Exchange in 1972...

were merged to form DBS Bank (Hong Kong).