Hong Kong investors plan AT1 action against Switzerland

HONG KONG — Investors in Hong Kong are preparing to file a request for arbitration against the Swiss government for writing off the AT1 bonds issued by Credit Suisse, claiming the move was at odds with a bilateral investment treaty between the jurisdictions, Nikkei Asia has learned.

Chinese law firm Fangda Partners said it was preparing to file the notice of dispute against the Swiss Federal Council on behalf of a group of family offices and retail investors this month, adding to legal action taken by other investors around the region. The request will be filed under the United Nations Commission on International Trade Law and will be the first public instance of Hong Kong investors taking legal action over the Credit Suisse bonds.