With a hope of lenders reversing some of the loss provisions made in connection with Lehman Brothers derivatives, shares of some local Hong Kong banks rose on Monday.

Recently, a proposal was made to banks under which holders of the so-called “minibonds” will recover between 70% and 93% of the value of the amounts invested in those structured financial products, which collapsed during the financial crisis. Sixteen Hong Kong banks have reported to agree over this proposal.

The Hong Kong lenders had sold the minibonds to thousands of local investors as safe investments and later they were forced to buy them back from investors for at least 60% of their original value. So, now efforts are being made to reverse that loss incurred.

In an official statement, a lender said, “Based on the recovery rates as advised by the receivers [of Lehman Brothers], the total level of recovery to eligible customers, after taking into account the offer of ex-gratia payments, will be in the range of 85% to 96.5% of the principal amount of their investment”.

Citigroup analysts said that if other Hong Kong banks like Bank of East Asia Ltd., Dah Sing Banking Group Ltd. and Wing Hang Bank Ltd. achieved a similar percentage of recovery, they could reveal a one-off profit before tax increase of 1.6%-3.5%.