Zambia Court Directs Standard Chartered to Cover Costs Instead of Compensation for China Property Bond Sale

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Sep 10 2025

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Source: Reuters

Court Ruling on Compensation: Zambia's high court ruled that Standard Chartered is not required to pay $500,000 in compensation to a former client for selling a defaulted Chinese property bond, stating the bank did not violate local laws.
Internal Conduct Breach: Although the court found no legal infractions, it noted that Standard Chartered's sales tactics did not meet its own internal conduct standards, leading to an order for the bank to cover the client's legal costs.
SEC Sanctions: The Securities and Exchange Commission of Zambia had previously sanctioned Standard Chartered for failing to disclose important information about the Chinese property firm Sino Ocean and for using exclusionary contract clauses.
Potential Appeal: Both parties have the option to appeal the court's decision, and Standard Chartered is also in the process of selling its Zambian wealth and retail banking businesses.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.