The removal of $1.2 billion is a blow to BOCHK, which is trying to recover a loan from Chau Ching-ngai Receivers for Shanghai Land Holdings last week moved the company's $1.2 billion in cash and bank balances from BOC Hong Kong (Holdings) to an account at Standard Chartered, according to sources. The transfer by Stephen Liu Yiu-keung and Kenneth Yeo Boon Ann of Ernst & Young Transactions is a symbolic disappointment to BOCHK, which had appeared to take consolation in being able to hold on to the deposit as it tries to recover a loan made to arrested businessman Chau Ching-ngai. The assets represent a strong enticement to any potential buyers of the 75 per cent stake which Chau's Hong Kong flagship New Nongkai Global Investments holds in Shanghai Land, now up for sale. A source close to BOCHK said the relocation of the deposit would not affect the lender's ability to recover its outstanding loan. 'The money is now in the hands of the receivers,' the source said. BOCHK and Shanghai Land receivers declined to comment on the fund transfer. BOCHK is trying to recover $740 million outstanding from a $2.1 billion credit line it had granted New Nongkai. The loan helped finance Chau's takeover last year of wireless communications firm ImGo, which has since been renamed Shanghai Land. New Nongkai had mortgaged its stake in Shanghai Land to obtain the credit, giving BOCHK a first legal charge over the stake. But the lender cannot make a direct claim against Shanghai Land's cash and bank balances. Even so, a BOCHK-appointed special committee made repeated references to the deposit in a report released earlier this month following a review of the bank's corporate governance and credit-approval processes. A special provision of $126 million had been made for the loan. The report noted Shanghai Land 'has few liabilities that could be applied against the deposit'. Meanwhile, provisional liquidators have been appointed to wind up Chau's private company for the $37 million it allegedly owes Shanghai Merchants Holdings. Alan Tang Chung-wah and Alison Wong Lee Fung Ying - receivers of Shanghai Merchants - said Win Victory Holdings was unable to repay its debts. Hong Kong-registered Win Victory, 51 per cent held by Chau and 49 per cent by Chau's wife Mo Yuk-ping, has been asked to repay to Shanghai Merchants the $37 million allegedly deposited into the Liu Chong Hing Bank accounts of Win Victory on several occasions between February and May. Mr Tang would not say yesterday whether the winding up of Win Victory would result in the repayment in full to Shanghai Merchants, but the receivers were aware there was a flurry of money transfers at Win Victory. The receivers, meanwhile, said they were still reviewing the books and records of Shanghai Merchants and were unable to say when the interim results would be released, even though the deadline for the results is today.