In this file photo dated July, 2020, people exercise at a park in Hong Kong. (PHOTO / XINHUA)
The eighth batch of Silver Bonds issued by the Hong Kong Special Administrative Region government is available for subscription until Aug 9. Eligible residents can subscribe to the bonds through designated banks and securities brokers.
Interest will be paid every six months with a guaranteed minimum rate of 5 percent, higher than the previous 4 percent.
In light of market response, the government may increase the issuance size to a maximum of HK$55 billion ($7.05 billion) from the current HK$50 billion target. The bond will be issued on Aug 18.
The Silver Bonds being offered at HK$10,000 per unit with a tenor of three years cannot be traded on the secondary market, but bondholders can sell them to the government at parity together with accrued but unpaid interest before maturity.
ALSO READ: Guaranteed returns, size lifted on HK's latest Silver Bonds
The Silver Bonds being offered at HK$10,000 per unit with a tenor of three years cannot traded on the secondary market, but bondholders can sell them to the government at parity together with accrued but unpaid interest before maturity
Hong Kong residents aged 60 or above can subscribe to the bonds through 28 securities brokers appointed by the Hong Kong government, such as Bright Smart Securities (Hong Kong) and Celestial Securities, and 20 banks, including Bank of China (Hong Kong) and the Bank of East Asia.
To prevent an over-concentration of holdings in retail bonds by a small number of investors, a limit of HK$1 million per investor will be set, which means each investor can be allocated a maximum of 100 units of retail bonds.
The latest issuance came as Hong Kong is striving to deal with problems brought on by an ageing population. Figures from the Census and Statistics Department have shown that as of 2022, the number of elderly people in Hong Kong is approaching 2.2 million, with an annual increase of 100,000.
Financial Secretary Paul Chan Mo-po stated earlier that the issuance of Silver Bonds is part of the government’s efforts to help residents prepare proactively for retirement by introducing innovative financial products and various policy measures.
READ MORE: HK: Latest batch of Silver Bonds to provide 4% guaranteed return
Almost 290,000 residents subscribed for the Silver Bonds last year.
