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The high-profile lawsuit instigated by Yang Rong, former board chairman of Brilliance Group, at Supreme Court of Bermuda to claim Chinese state assets has failed, sources with the Chinese government told Xinhua on Monday.

The lawsuit against Brilliance China Automotive Holdings Ltd. (CBA) Chinese Financial Education Development Foundation and Huachen Automotive Group Holding Company Ltd., was turned down by the Supreme Court of Bermuda on Dec. 31, 2003.

The civil case was brought to court by Yang Rong in the name of the Broadsino Finance Company Ltd. Yang claimed that Broadsino was the holder of the CBA, and its shares had been unlawfully expropriated by Liaoning provincial government.

However, the Supreme Court of Bermuda said in its court ruling that "the plaintiff never owned any shares" in the defendant CBA.

According to the Liaoning provincial government, Yang Rong, former board chairman of the Brilliance Group, was not a private entrepreneur, but an agent entrusted by the government to run state-owned assets in that group.

Justice Philip Storr said in the ruling: "I fear that I do not find that the account of the Plaintiff's case to be credible or to accurately found the basis of a claim against the first defendant," and its case "an abuse of the process of the Court" to pursue its claim.

Lawyers and legal experts in China said that Yang Rong is still able to appeal the court ruling, but has no chance to win.

His claim against Chinese state assets has been destroyed by the Supreme Court of Bermuda, a Chinese lawyer who closely follows the case said.

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