A FAMILY of three from Taiwan is suing HSBC Private Bank for forcing them to close a foreign exchange trade on their US$24 million (S$37 million) investment account, which resulted in them suffering losses and being deprived of potential profits.

Mr Huang Po Jen, 30, his mother Madam Chen Ling San, 57, and his grandmother, Madam Chen Cheng Su Yun, 83, are claiming about US$3 million in total.

The case opened in the High Court on Monday and is scheduled for 10 days.

The dispute revolves around a purported investment strategy that Mr Huang said was agreed on the phone between him and bank employees on Nov 11, 2004.

He claims that the strategy allowed him to hedge a forex transaction - by conducting an opposite trade - unless his collateral fell below a certain level.

Hedging is the practice of engaging in financial transactions which offset each other, to reduce potential losses.

But, Mr Huang claimed, about a month later, HSBC changed its mind and pulled the plug on the agreement.

Being unable to hedge and protect his investment resulted in losses, he complained.

Mr Huang, who has lived in New Zealand for the past 15 years and is a naturalised citizen, manages the assets of his family. The two women live in Taiwan.

He opened an account with HSBC here in January 2004, which allowed him to trade in foreign exchange.

Read the full report in Tuesday's edition of The Straits Times.